July 27, 2022
A new acquisition made by Amazon could expand its virtual care capabilities, reporting by Catherine Thorbecke on the CNN Business website suggests.
Amazon announced it has entered an agreement to acquire primary healthcare company One Medical in an all-cash deal valued at approximately $3.9 billion.
One Medical is a membership-based primary care service that promises customers “24/7 access to virtual care.” The company operates in a dozen major U.S. markets, according to its website, Thorbecke reports, and works with over 8,000 companies to offer One Medical health benefits to their employees.
In a statement announcing the acquisition, Neil Lindsay, senior vice-president of Amazon Health Services, said Amazon thinks “healthcare is high on the list of experiences that need reinvention.” Lindsay added that Amazon hopes to be one of the companies “that helps dramatically improve the healthcare experience over the next several years.”
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With the One Medical deal, Amazon would gain access to physical health clinics and “payer and hospital system relationships,” Evercore ISI analyst Elizabeth Anderson said in a note reported on by Thorbecke.
“Headquartered in San Francisco, One Medical has seen demand for its services surge in recent years amid the Covid-19 pandemic and the rise of the telehealth sector. In its most-recent quarterly earnings report, One Medical said it had a total membership count of 767,000, up 28 percent year-over-year. One Medical went public in January 2020,” Thorbecke writes.
