Please ensure Javascript is enabled for purposes of website accessibility
Amazon to Buy Primary Care Provider One Medical for $3.9B
gvw_ap_news
By Associated Press
Published 2 years ago on
July 21, 2022

Share

 

Amazon announced Thursday it will acquire the primary care organization One Medical in a deal valued roughly at $3.9 billion, marking another expansion for the retailer into health care services.

The Seattle-based e-commerce giant said in a statement it will acquire One Medical for $18 per share in an all-cash transaction. Its one of Amazon’s biggest acquisitions, following its $13.7 billion deal to buy Whole Foods in 2017 and its $8.5 billion purchase of Hollywood studio MGM, which closed earlier this year.

One Medical, whose parent company is the San-Francisco based 1Life Healthcare, Inc., is a membership-based service that offers virtual care as well as in-person visits. It also works with more than 8,000 companies to provide its health benefits to employees.

As of this March, One Medical had about 767,000 members and 188 medical offices in 25 markets, according to its first-quarter earnings report, which also showed the company had incurred a net losses of $90.9 million after pulling in $254.1 million in revenue. The total deal value announced Thursday includes One Medical’s debt.

Neil Lindsay, the senior vice president of Amazon Health Services, said in a statement the acquisition is geared towards reinventing the healthcare “experience” for things like booking an appointment and taking trips to the pharmacy.

“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” Lindsay said.

Overall, consumer demand for telemedicine and virtual health care care visits has exploded during the COVID-19 pandemic. Health care bill payers like employers and insurers are also becoming more focused on improving access to patient care and making sure their patients stay tuned in to their health, see their doctors regularly and take their prescriptions.

Health care costs have risen faster than wages and inflation for years and represent a huge expense to employers that offer coverage. Employers and insurers think that by connecting people to regular care, they can prevent expensive hospital stays from happening or keep chronic conditions like diabetes from leading to bigger problems.

For Amazon, the acquisition deepens its foray into health care services. In 2020, the retail colossus opened an online drug store that allows customers to order medication or prescription refills, and have them delivered to their front door in a couple of days. Last year, it began offering its Amazon Care telemedicine program to employers nationwide.

In morning trading, shares of 1Life Healthcare surged 68% to $17.13.

The deal is subject to regulatory approval. On completion, Amazon said One Medical’s CEO Amir Dan Rubin will remain in his position.

RELATED TOPICS:

DON'T MISS

Biden Administration to Lend $1.5B to Restart Michigan Nuclear Power Plant, a First in the US

DON'T MISS

Wired Wednesday: How Going to Work for Trump Turned Devin Nunes Into a Millionaire

DON'T MISS

Chinese Leader Xi Issues a Positive Message to US Business Leaders as Ties Improve

DON'T MISS

Trump’s Social Media Company Soars Nearly 50% in Its First Day of Trading on Nasdaq

DON'T MISS

Boeing CEO to Exit in Broad Management Shakeup as Manufacturing Issues Plague Storied Plane Maker

DON'T MISS

Trump’s Social Media Company Approved to Go Public, Potentially Netting Former President Billions

DON'T MISS

Reddit, the Self-Anointed ‘Front Page of the Internet,’ Jumps 55% in Wall Street Debut

DON'T MISS

Apple Has Kept an Illegal Monopoly Over Smartphones in US, Justice Department Says in Antitrust Suit

DON'T MISS

Reddit Poised to Make Its Stock Market Debut After IPO Prices at $34 Per Share Amid Strong Demand

DON'T MISS

Federal Reserve Still Foresees 3 Rate Cuts This Year but Envisions Fewer Cuts in Future

No data was found

Facebook News Tab Will Soon Be Unavailable as Meta Scales Back News and Political Content

10 hours ago

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

10 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

10 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

11 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

11 hours ago

Biden’s Fundraiser with Obama and Clinton Nets a Record $25 Million, His Campaign Says

11 hours ago

Fresno Unified’s Self-Protection Racket Is Hurting Our Kids

12 hours ago

Rockin’ Out or Laughing, the Valley Has Its Pick of Weekend Events

12 hours ago

Ex-Correctional Officer at Women’s Prison in California Sentenced for Sexually Abusing Inmates

15 hours ago

Caitlin Clark and Iowa Draw Nearly 5 Million Viewers for Second-Round NCAA Win

15 hours ago

PGA HOPE at Riverside Golf Course Introduces Military Veterans to the Game

PGA HOPE, now underway at Fresno’s Riverside Golf Course, is designed to introduce golf to veterans and active duty military members t...

8 hours ago

PGA HOPE at Fresno's Riverside Golf Course
8 hours ago

PGA HOPE at Riverside Golf Course Introduces Military Veterans to the Game

10 hours ago

Cronenworth’s Big Hit Helps Lift the Padres to a 6-4 Win Over Melvin’s Giants

10 hours ago

Shohei Ohtani Reaches 3 Times in Home Debut as the Dodgers Rout the Cardinals 7-1

10 hours ago

Facebook News Tab Will Soon Be Unavailable as Meta Scales Back News and Political Content

10 hours ago

Stock Market Today: Wall Street Rises to More Records to Close Out Its Latest Winning Month

10 hours ago

A Fresno County First: Kerman Council Passes Amended Gaza Cease-Fire Resolution

11 hours ago

UN Top Court Orders Israel to Open More Land Crossings for Aid into Gaza

11 hours ago

How Involved Is Southern California Consulting Firm in FUSD Executive Dealings?

MENU

CONNECT WITH US

Search

Send this to a friend