Amazon is buying clinic operator One Medical in a $4 billion deal

Amazon announced Thursday that it has acquired One Medical, a primary care provider for healthcare.

One Medical will be purchased by the e-commerce giant for $18 per share. This deal values One Medical at $3.9Billion. It is among Amazon’s most significant acquisitions. This includes its purchase of MGM Studios worth $8.5 billion and its purchase of Whole Foods worth $13.7 billion.

One Medical promises to make it easier to get a doctor’s visit by offering a variety of medical services for $199 per annum. The company offers virtual care 24/7 and members can make appointments via the app for same-day or next-day visits. After acquiring eldercare pioneer Iora Health, it also provides care for seniors in the US Medicare program.

According to a quarterly filing, One Medical had 188 locations in the US as of March 31st and served approximately 767,000 members.

Neil Lindsay, senior vice-president of Amazon Health Services, stated that “health care is high up on the list for experiences that need to be reinvented.” We see lots of opportunities to improve the experience and give people valuable time back in their lives.

This is not Amazon’s first venture into healthcare. In 2018, the company bought PillPack, a mail-order pharmacy, for approximately $750 million. Amazon Care is a medical service that offers online consultations and visits to doctors.

Bloomberg News reported that CVS Health (which owns a pharmacy chain and provides health insurance) had expressed interest to acquire One Medical. Bloomberg reported that CVS rejected the deal but One Medical was looking for other offers.

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