Key Highlights
- An e-commerce giant, Amazon planned to buy One Medical, a primary healthcare provider, for approximately $3.9 billion.
- Amazon hopes to improve the healthcare experience, appointments, etc., for the users over the next several years.
Amazon decided to acquire One Medical, a primary healthcare provider, for $18 a share, an all-cash deal that values at roughly $3.9 billion.
Neil Lindsay, Senior Vice President of Amazon Health Services, said that the deal deepens the presence of Amazon in healthcare that tops the list of experiences that require reinvention.
He also stated that the e-commerce giant Amazon hopes to improve how people book appointments and the experience of being seen by a physician. He added that they love to invent and implement what will be easier, and they want to be one of the companies that helps improve the healthcare experience dramatically over the next several years.
One Medical operates a network of boutique primary-care practices and offers telemedicine services. According to its recent quarterly results, it has grown to oversee 188 medical offices in 25 markets and counts 767,000 members. One Medical reported a net loss of $90.9 million on revenue of $254.1 million in the first quarter.
The CEO of One Medical, Amir Dan Rubin, mentioned that there is an immense opportunity to make the health care experience more affordable, accessible, and even enjoyable for patients, providers, and payers. Once the deal closes, he will continue to run One Medical.
Shares of 1Life Healthcare, One Medical’s parent, climbed 69%, closing up just below the purchase price. Before the deal’s announcement, shares of 1Life were trading at $10.18. Amazon’s stock closed up 1.5%.
Amazon signaled a greater interest in the healthcare space when it purchased PillPack in 2018 for $750 million, using the acquisition to launch its online pharmacy years later. The company has also ramped up its telehealth service, Amazon Care, and sought to develop at-home medical diagnostics.
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