Amazon purchases One Medical

Amazon recently purchased One Medical in a nearly $4 billion all-cash deal. The company plans to utilize the deal to expand its reach into the healthcare industry. One Medical is a primary care subscription service that promises patients “24/7 access to virtual care”.[1]

This is not the tech giant’s first healthcare acquisition. Amazon purchased PillPack, an online mail-order pharmacy, in 2018 for $753 million.[2] The company later rolled out ‘Amazon Pharmacy’, placing its branding on PillPack. Additionally, Amazon embarked upon a joint venture with JPMorgan Chase and Berkshire Hathaway called Haven. Haven was a nonprofit healthcare organization that seeks to “lower costs for the company’s employees and improve the primary care experience”.[3] Haven dissolved last year after it was only in operation for three years.[4] In 2019 the company formed Amazon Care, a 24/7 telehealth service app that allowed individuals to connect with their physicians.

The deal raises questions about how Amazon plans to change the healthcare industry via its involvement with One Medical. Senior vice president of Amazon Health Services, Neil Lindsay, stated: "We think health care is high on the list of experiences that need reinvention".[5] Amazon seeks to change the healthcare experience by improving how people book appointments with their providers and their experience at their appointments. When asked how the merger will impact the healthcare industry, experts have said they believe the impact of Amazon creating a more streamlined healthcare experience could have a ripple effect, causing other healthcare providers to seek out ways to improve patient experiences.[6]

The merger has also raised questions about how Amazon plans to incorporate high-need patients or patients who have chronic conditions and need consistent care. Amazon has been criticized for its lack of an approach to managing chronic conditions for vulnerable populations in their health strategy.[7] Streamlined and efficient healthcare services will have a positive impact on the healthcare industry, but not if that means it will come at the expense of quality care. Bottom line: the impact of the recent merger on the U.S. healthcare industry remains to be seen.

[1] https://www.npr.org/2022/07/26/1113427867/amazon-one-medical-health-care

[2] https://www.cnn.com/2022/07/21/tech/amazon-one-medical/index.html

[3] https://www.npr.org/2022/07/26/1113427867/amazon-one-medical-health-care

[4] https://www.npr.org/2022/07/26/1113427867/amazon-one-medical-health-care

[5] https://www.npr.org/2022/07/26/1113427867/amazon-one-medical-health-care

[6]https://www.healthline.com/health-news/how-will-amazons-acquisition-of-one-medical-impact-healthcare#The-future-of-health

[7]https://www.healthline.com/health-news/how-will-amazons-acquisition-of-one-medical-impact-healthcare#Concerns-about-chronic-care