Amazon has acquired primary healthcare organization One Medical for approximately $3.9 billion, as the e-commerce giant steps up efforts to reinvent healthcare in digital and virtual era.
One Medical combines in-person care in inviting offices across the country with digital health and virtual care services, making it easier for patients to schedule appointments, renew prescriptions, access up-to-date health records, and advance health outcomes.
One Medical went public in 2020 and was backed by Google and others as a startup.
Major digital healthcare projects from Amazon
2022
Tied up with Teladoc Health, the biggest telehealth company, to help patients connect with a doctor or another health provider through Alexa
Partnered with the Fred Hutchinson Cancer Center in research to develop vaccines for melanoma and breast cancer
2021
Struck a deal to sell virtual medical services to Hilton in the United States
Expanded virtual healthcare service to its own employees and other businesses nationwide
2020
Launched its first fitness band and subscription service, Halo, taking on Apple, Fitbit and Samsung in the fitness tracker market
2019
Closed down the JV between Amazon.com, Berkshire Hathaway and JPMorgan Chase, three years after the companies came together in a bid to reduce escalating healthcare costs
Piloted on-demand health offering called Amazon Care for employees around Seattle
Bought healthcare startup Health Navigator, its second purchase in the healthcare services industry
2018
Bought online pharmacy PillPack for $753 million
The online retailer first piloted virtual care visits for its own staff in Seattle in 2019 before offering services to other employers under the Amazon Care brand. It bought online pharmacy PillPack in 2018, underpinning a prescription delivery and price-comparison site it later launched.
The Seattle-based retailer has signaled its ambitions to improve and speed up care. However, a big idea akin to how Amazon has automated the role of cashiers in grocery stores has yet to emerge.
In One Medical, Amazon is acquiring a loss-making company with 767,000 members and enterprise clients such as Airbnb and Alphabet’s Google, which offer its services as a benefit to employees, according to its website and recent financial results.
Larger rival Teladoc Health has more than 54 million paying members in the United States and double One Medical’s quarterly revenue.
Amazon Care recently made its virtual care accessible nationwide and added the option for house-calls in Los Angeles, Washington, Dallas and elsewhere. The COVID-19 pandemic helped increase demand as Amazon Care started signing up clients including Hilton Worldwide Holdings Inc
One Medical, founded in 2007, gives Amazon 188 medical offices, its recent financial report showed.
Carlyle Group, which paid $350 million for a minority stake in One Medical in 2018, will exit from the company as part of Amazon’s acquisition.
