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The FTC will continue to look into the $3.9B deal, despite not stopping it from going through
After Amazon revealed its $3.9 billion deal to buy primary care provider One Medical, there was some possibility that the deal might be squashed by the Federal Trade Commission, which said in September that it had asked both companies for additional information and documentary materials.
The potential legal challenges are not done, though: despite not blocking the completion of the acquisition, the FTC will still continue its investigation into the merger, an agency spokesman told the Journal.
Founded in 2007, One Medical is a members-only technology platform that runs its own clinics across the U.S.
For less than $200 a year, patients get access to health professionals, 24/7 virtual care, and same-day appointments. They are able to enjoy more quality time with their provider during longer appointments, they can e-mail their provider directly with follow up questions, get access to 24/7 phone support and stay connected and on top of their health with the One Medical mobile app. Patients can also schedule same- or next-day appointments via phone, app or online.
The company currently has locations in Atlanta, Austin, Boston, Chicago, Columbus, the D.C. Metro Area, Houston, Los Angeles, New York, Orange County, Phoenix, Portland, Raleigh-Durham, San Diego, Seattle, and the SF Bay Area, with locations coming soon to Dallas–Ft. Worth, Miami, and Milwaukee.
Now that the deal is officially closed, Amir Dan Rubin will continue as CEO of One Medical going forward.
Along with the announcement of the close of the deal, Amazon also revealed that, for a limited time, One Medical membership will be able available to new customers in the U.S. for $144, a discount of 28% discount, for the first year.
Healthcare has been a priority for Amazon for at least the last few years; one of its biggest initiatives was Haven, the healthcare company that emerged from a joint venture between JP Morgan Chase, Amazon and Berkshire Hathaway in 2018. The goal, the company said at the time, was to use technology to make healthcare simpler, higher-quality and lower cost. It quietly shut down in 2021.
In addition to Haven, Amazon also debuted its own pharmacy delivery service, which followed its purchase of online pharmacy PillPack for over $700 million in 2018, as well as the launch of its own line of over the counter drugs.
The company also launched Amazon Care, its virtual health service for employees that it first launched in 2019, which it abruptly announced would be shutting down right after the One Medical deal. A few months later, however, the company was already getting back into the space with a new offering called Amazon Clinic, which is available to any patient rather than just those who work at Amazon or its partners.
By adding One Medical, Amazon has positioned itself firmly in the primary care space, but it will have some stiff competition: earlier this month, CVS Health announced it was buying value-based primary care platform Oak Street Health for $10.6 billion.
Other deals have included VillageMD's purchase of Summit Health-CityMD for $8.9 billion in November, which included investments from Cigna subsidiary Evernorth and Walgreens Boots Alliance. UnitedHealthcare, meanwhile, launched its own virtual primary care offering in early 2021.
“If you fast forward 10 years from now, people are not going to believe how primary care was administered. For decades, you called your doctor, made an appointment three or four weeks out, drove 15-20 minutes to the doctor, parked your car, signed in and waited several minutes in reception, eventually were placed in an exam room, where you waited another 10-15 minutes before the doctor came in, saw you for five to ten minutes and prescribed medicine, and then you drove 20 minutes to the pharmacy to pick it up—and that’s if you didn’t have to then go see a specialist for additional evaluation, where the process repeated and could take even longer for an appointment,” Amazon CEO Andy Jassy said in a statement.
“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”
(Image source: glassdoor.com)
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