Amazon’s $18 per share offer represents a 77 percent premium for the subscription-based provider. Shares of 1life Healthcare Inc, the parent company of One Medical, rose more than 68 percent, to just above $17, following the announcement.
Amazon founder Jeff Bezos owns The Washington Post.
One Medical is a membership-based primary care provider that emphasizes digital services and builds seamless relationships with patients. The company, headquartered in San Francisco, operates 188 offices with 767,000 members, but is not profitable. The provider lost nearly $91 million in the three-month period ended March 31.
One Medical’s subscription model and strategy of planting offices close to where people work and shop seek to combine the convenience of emergency care with the stability of providing a ‘medical home’ to patients. It praises its easy-to-use website and app to book appointments and maintain medical records, similar to the interfaces consumers have come to expect from tech companies, to differentiate it from traditional medical offices.
The acquisition dramatically expands Amazon’s reach in healthcare. It debuted the new Amazon pharmacy in 2020, two years after it acquired online pharmacy PillPack for $753 million.
The tech giant already operates Amazon Care, which offers telehealth visits for employees of certain companies in some cities. In 2021, Amazon landed a major customer who partnered with Hilton to give its employees access to Amazon Care’s services with its corporate health plan.
And in leaked audio from a November meeting, Amazon CEO Andy Jassy told staff that Amazon Care is one of the company’s top innovations, stressing that the division is committed to expanding through partnerships and new services, Insider previously reported. this year. .
But Amazon’s previous health initiatives have also failed. Haven, an ambitious effort by three of America’s leading companies – Amazon, JPMorgan Chase and Berkshire Hathaway – to tackle rising healthcare costs and improve patient outcomes, was discontinued last year after two years.