Amazon-One Medical's $3.9B deal one year later

It's been about one year since Amazon announced plans to acquire primary care provider One Medical in a $3.9 billion deal completed in February.

Amazon's announcement last June sent a shockwave through the healthcare industry and set off a bidding war for other large healthcare platforms. CVS Health targeted Signify Health, a home care provider, in an $8 billion deal which closed in March. Then in May, CVS Health also purchased primary care provider Oak Street Health in a $10.6 billion deal.

Optum, owned by UnitedHealth Group, has continued to purchase large physician groups and add to its primary care business. VillageMD, majority owned by Walgreens Boots Alliance, also made a multi-billion acquisition to acquire Summit Health-CityMD, which provides both primary and specialty care services. The $8.9 billion deal closed in January.

The One Medical deal also shook up Amazon internally.

Shortly after making the deal, Amazon publicly announced plans to close its healthcare services business, AmazonCare, and alluded to a new forthcoming platform. The company completely shut down its virtual and in-person care business and made leadership changes as well.

Amazon then launched a new version of its healthcare services dubbed Amazon Clinic in November to trial in 27 states. The service was scheduled for nationwide launch June 27 but was delayed for three weeks shortly after the company received a letter from two U.S. Senators who inquired about whether the company was "harvesting" patients' data.

Amazon has defended its privacy policies and HIPAA compliance, and said Amazon Clinic's full launch delay wasn't related to the inquiry.

One Medical continues to provide virtual and in-person care as part of Amazon and grow One Medical for Businesses, an employee benefit program serving companies including Google, Nasdaq and Airbnb. One Medical has more than 125 offices nationwide for in-person services and works with 8,500 companies nationwide.

One Medical is open to all customers regardless of their relationship with Amazon, and Amazon Prime memberes can get $55 off their first year of membership, which costs $199 per year and covers select on-demand virtual and in-person services.

Andy Jassy, CEO of Amazon, said in a news release that primary care will look a lot different in the next decade. Instead of driving to appointments, waiting, and then seeing the physician before having to drive to another location and picking up a prescription, primary care will be more seamless.

"Customers want and deserve better, and that's what One Medical has been working and innovating on for the last decade," he said. "Together, we believe we can make the healthcare experience easier, faster, more personal and more convenient for everyone."

 

 

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