E-commerce giant Amazon to acquire One Medical, a leading primary care organisation in the US. On July 21, both the companies signed the deal wherein Amazon agreed to acquire One Medical for $3.9 Billion, including One Medical’s net debt.
While significantly expanding Amazon’s foothold in the healthcare industry, this acquisition will allow Amazon and One Medical to offer their customers a wide range of innovative and quality healthcare solutions.
About One Medical
One Medical is a leading employee benefits provider in the US, with Google, Airbnb, Nasdaq and other 8000 companies trusting its services. Based in Seattle, the healthcare company offers membership-based services for virtual and in-person care.
With the ever-increasing massive infrastructure of 180 medical offices in 15 metro areas and 767000 active members, One Medical is determined to make healthcare accessible and affordable for everyone.
Amazon’s journey in healthcare
Amazon, the leader in e-commerce, has been edging into the healthcare space for quite some time now. It has:
- Launched Amazon Pharmacy service
- Acquired Whole Foods
- Acquired PillPack
- Expanded its employee benefits program Amazon Care for the whole of the US
- Is providing health IT services with AWS for healthcare
- Ventured into Haven healthcare (though unsuccessful)
- Runs a healthcare accelerator and whatnot.
However, Amazon is yet to crack the $6.2 trillion healthcare industry, and the One Medical acquisition may be a tipping point.
Concerns with Amazon acquiring One Medical
Amazon acquiring One Medical has received mixed reviews ever since the announcement. While some netizens believe it won’t make any innovative changes, others see potential in it.
One common concern is—Health data security. With Amazon known to use user data for marketing and advertising purposes, privacy advocates are concerned about the safety of sensitive health records. However, Amazon has cleared that all One Medical data will be handled separately and not be used for marketing purposes.
“Both One Medical and Amazon have stringent policies protecting customer privacy in accordance with HIPAA and all other applicable privacy laws and regulations,” said Amazon spokeswoman Angie Quennell.
Another concern raised by Seiguer, JD and CEO of emocha Health, is regarding chronic care. He says, “Amazon’s healthcare strategy lacks an approach to managing conditions. Only if Amazon addresses it will it be able to make revolutionary changes in the healthcare industry.”
How will this acquisition impact the healthcare sector?
While both the companies have signed the deal, the deal is yet to close. Approval from regulatory authorities, board of directors, and stakeholders is pending. This deal would be Amazon’s third largest acquisition, after Whole Foods Market and MGM.
While the impact of this acquisition is an open question, the possibility of innovation in Amazon’s presence is huge. The combination of One Medical’s massive infrastructure and Amazon’s cutting-edge technology can make a lot of things possible.
- 24/7 digital door to healthcare both virtually and in person.
- Primary healthcare accessible to everyone.
- e-clinics in rural areas.
- Hassle-free appointments
- Cutting the middleman and huge expenses.
With endless start-ups making waves in the healthcare space, it’ll be interesting to see what benefits Amazon and One Medical will bring to the table. For now, we can sit back and watch where it goes.
Let us know your thoughts on Amazon acquiring One Medical in the comments.
