Amazon completes the purchase of One Medical: Why did it pay 3.9 billion dollars for a health provider?

Amazon closed its $3.9 billion deal for primary care provider One Medical , a process that began in June 2022 and is still under scrutiny in the United States.

Amazon announced the official purchase of primary healthcare provider One Medical for $3.9 billion.

The company has long had ambitions to expand into healthcare and with this company it is attempting to further this purpose.

amazon and health

Amazon agreed last July to acquire One Medical to deepen its presence in healthcare and “drastically improve” the healthcare experience.

In its previous acquisitions, it bought online pharmacy PillPack in 2018 for $750 million, later launching its own virtual clinic for chronic conditions and prescription benefits for Prime members.

Now, the current agreement gives Amazon access to One Medical ‘s more than 200 physical medical offices in 26 markets and approximately 815,000 members.

In a statement, CEO Andy Jassy said healthcare is ready for this disruption, citing long appointment times and the complexities of primary care.

“Customers want and deserve better, and that is what One Medical has been working on and innovating for over a decade,” Jassy said in a statement. “Together, we believe we can make the healthcare experience easier, faster, more personal and more convenient for everyone.”

Discounts for patients

In the United States, Amazon said it will discount the price of One Medical memberships by $200 to $150 in the first year, regardless of whether they are Prime subscribers.

The closing comes after the deadline for the Federal Trade Commission (FTC) to challenge the agreement expired.

“The FTC’s investigation into Amazon ‘s acquisition of One Medical continues,” FTC spokesman Douglas Farrar said. “The commission will continue to review the potential harms to competition created by this merger, as well as the potential harms to consumers that may result from Amazon ‘s control and use of sensitive consumer health information held by One Medical .”