On Thursday, Amazon announced that it will acquire primary care organization One Medical in a deal worth around $3.9 billion (nearly Rs 31,100), marking another expansion by the retailer. to health care services.
In a statement, the Seattle-based e-commerce giant said it would buy One Medical for $18 (nearly Rs 1,400) per share in an all-cash transaction. It is one of AmazonTheir biggest acquisitions come after the $13.7 billion (nearly 1,09,400 crore) purchase of Whole Foods in 2017 and the $8.5 billion (nearly 67,800 crore) purchase of the Hollywood studio. MGMclosed earlier this year.
One Medical, whose parent company is San-Francisco-based 1Life Healthcare, is a membership-based service that offers virtual care as well as face-to-face visits. It also works with more than 8,000 companies to offer its health benefits to employees.
As of this March, One Medical has about 767,000 members and 188 medical offices in 25 markets, which, according to its first-quarter earnings report, also showed the company posted a net loss of $90.9 million (nearly 700). Rs) after pulling in sales of $254.1 million (nearly 2,000 crore). The total value of the deal announced Thursday includes One Medical’s debt.
Neil Lindsay, senior vice president of Amazon Health Services, said in a statement the acquisition aims to reinvent the healthcare “experience” for things like booking appointments and going to the pharmacy. .
“We love to invent to make what is easier, and we want to be one of the companies that dramatically improves the healthcare experience over the next few years,” says Lindsay.
Overall, consumer demand for telemedicine and virtual healthcare has exploded during the COVID-19 pandemic. Healthcare bill payers like employers and insurance companies are also focusing more on improving access to patient care and ensuring their patients stay on top of their health. their health, see their doctor regularly, and get their prescriptions.
Health care costs have been growing faster than wages and inflation for years and have taken a huge toll on employers providing coverage. Employers and insurers argue that by connecting people to routine care, they can prevent costly hospital stays or prevent chronic conditions like diabetes from leading to problems bigger.
For Amazon, this acquisition accelerates their foray into healthcare services. In 2020, the retail giant opened an online drug store that allows customers to order drugs or refill prescriptions and have them delivered to their doorstep in a matter of days. Last year, they began offering Amazon Care telemedicine to employers across the country.
This agreement is subject to regulatory approval. Once completed, Amazon said One Medical CEO Amir Dan Rubin will remain in his position.
