Amazon To Acquire Medical Network For $3.9B And Make Strides In Healthcare

Amazon has taken a further leap into the medical world with a buyover of membership-based primary caregiver One Medical. This is the marketplace’s first major medical acquisition under the leadership of Chief Executive Andy Jessy, who has stated that the medicine business is going to be a big part of the retail company’s future.   

Amazon had begun its foray into the medical sphere after it first bought PillPack in 2018. This provided the e-commerce giant with a new branch of prescription delivery to its inventory. In 2019, it moved into virtual care visits for its employees in Seattle under the Amazon Care branding.

Eventually, Amazon Care launched nationwide and surged during the pandemic when house calls were made available for Los Angeles, Washington, and Dallas, among other locations. 

The US$3.9 billion One Medical deal includes debt that the healthcare provider has acquired, though it will also provide the online retailer with access to its 188 physical clinics and its 24/7 virtual health services. One Medical is based in San Francisco and has over 767,000 members in its registers. Some of One Medical’s clients include Airbnb and Alphabet.   

A statement from Neil Lindsay, senior vice president of Amazon Health Services, via a press release gives us insight into what the retail company has in store for its medical future. It states that it believes the medical sphere is one that needs “reinvention,” and that it can drastically change the landscape of how we interact with healthcare providers.

It was not specified how the experience will change, though Lindsay did cite situations such as booking an appointment, waiting to see the doctor, and even finding a parking spot that needed a revamp.  

Amir Dan Rubin, CEO of One Medical, noted in the same press release that combining its manpower with Amazon’s robust technological understanding will only pave the way for more accessible and affordable healthcare.  

However, according to CNN, the deal is still subject to the approval of One Medical’s board of directors and shareholders.  

Amazon continues to grow its empire from purely being retail to expanding into the entertainment and grocery sectors. It only begs the question of how the public will feel getting their healthcare needs from the same place they order their home appliances and clothes.

[via Wall Street Journal and Reuters, Photo 125456885 © Andreistanescu | Dreamstime.com]