Amazon is set to acquire One Medical in a major boost to its health care department. The e-commerce company has agreed to purchase the membership-based primary care service in a deal that is valued at a whopping $3.9 million.
Amazon is Set to Acquire One Medical in A Major Boost to Its Health Care Department
Tech giant Amazon will purchase One Medical as part of the company’s effort to expand into the health care sector and business, amazon said on Thursday. One Medical as you already knows runs a chain of over 150 primary care clinics in a dozen of cities in the United States and it also offers both online and mobile services. It is reported that Amazon will pay $18 a share for the company which will therefore put the value of the deal at about $3.9 billion
The acquisition of the company which must first be approved by regulators and One Medical shareholders before it is made final will expand the primary care services greatly that Amazon is already offering at the moment via its amazon care brand.
What Amazon Has To Say about the Purchase
Senior vice president of amazon health service, Neil Lindsay in a statement said “We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years.”
One Medical offers its services to individual subscribers and also workers who receive their benefits from employers. The company aims to accelerate access to care with round-the-clock virtual care for various patients and also quick appointment bookings.
Amazon Care services at the moment provide medical care in eight cities and this is including the home of amazon offices in Seattle and Arlington, Virginia it is currently slated to expand its services to San Francisco, New York, and other major cities.
Expert Analysis of the Acquisition
Rajiv Leventhal who is an Insider Intelligence analyst added that the acquisition made by amazon will make it a close competitor of CVS health and Walgreens efforts and plans to expand into primary care said that amazons “presence becomes much stronger as One Medical’s services reach nearly 800,000 members across 25 US markets.”
Amazon care patients at the moment can receive in-home visits for COVID-19 and flu testing, prevention care, vaccinations, prescriptions, and also treatment for a series of conditions and also book appointments online.
Amazon after launching amazon care back in 2019 followed up by launching its own online pharmacy in 2020. Amazon pharmacy fulfills prescriptions of people with or without insurance and then delivers them to the homes of customers. Members of prime also receive special savings discounts and free two-day shipping.