Amazon is set to acquire One Medical as it struck a deal to buy the primary healthcare company in an all-cash deal approximately valued at $3.9 billion, as per CNN.
One Medical, a membership-based primary care service, provides in-person care to a dozen major US markets. The company works with over 8,000 companies offering health benefits to employees.
But what probably pushed Amazon to proceed with the deal is the digital and virtual care services of One Medical, according to Engadget.
Accordingly, the health company will make it easier for people to schedule appointments, renew prescriptions, access up-to-date health records, and advance health outcomes, as per Engadget.
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Amazon is involved in development efforts for a grounbreaking vaccine set to treat breast cancer and certain types of skin cancer.
Amazon Hopes to Improve Healthcare Experiences
Following the announcement of the acquisition, Neil Lindsay, senior vice president of Amazon Health Services, said that Amazon believed "health care is high on the list of experiences that need reinvention."
"Together with One Medical's human-centered and technology-powered approach to healthcare, we believe we can and will help more people get better care, when and how they need it," Lindsay said in a statement.
He added that the e-commerce giant aspires to be one of the companies "that helps dramatically improve the healthcare experience over the next several years."
With 767,000 members and 188 medical offices across 25 markets, One Medical remains true to its aims of making quality care more affordable, accessible, and enjoyable.
Meanwhile, the deal between Amazon and One Medical is still subject to approval from the healthcare company's shareholders along with other closing conditions.
Once the deal is completed, One Medical CEO Amir Dan Rubin will remain at the helm of the company.
Amazon Expands Services in Healthcare Industry
Amazon's acquisition of One Medical only illustrates that the e-commerce giant is trying to expand its services in the healthcare industry.
In 2018, the company acquired PillPack, an online pharmacy. Later on, it put up its own digital pharmacy in the US.
In an effort to provide better health services and insurance, Amazon also collaborated with JP Morgan Chase and Berkshire Hathaway.
Workers and families at the three companies, and possibly other businesses, too benefitted by getting health services and insurance at a lower cost. Unfortunately, the project, called Haven, shut down last year.
In recent years, Amazon has expanded its line of business from online retail to entertainment, groceries, and more. Along with the expansion, the company has increased its vast reach into the lives of consumers.
According to CNN, the One Medical acquisition can be considered, as one of the largest in the e-commerce giant's history.
In 2017, Amazon acquired grocery chain Whole Foods for $13.7 billion, while earlier this year, it entered and closed an $8.5 billion deal to purchase iconic Hollywood movie studio MGM.
The deal with One Medical would give Amazon access to physical health clinics and "payer and hospital system relationships," according to Evercore ISI analyst Elizabeth Anderson, as cited by CNN.
When the COVID-19 pandemic hit, a surge in demand for One Medical service was seen. The rise of the telehealth sector was also observed.
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