Amazon is all set to buy One Medical, the primary healthcare provider, roughly at 3.9 billion dollars, $18 per share, which is one of the company’s most significant acquisitions. By cracking this deal, Amazon is setting a solid foot in the medical field with the new acquisition.
In 2020, One Medical went public and had grown in 25 markets with 188 offices and 767,000 members. Despite the growth, One Medical bore a loss of $90.9 mn and $254.1 mn in the first term. Father company of One Medical, 1Life Healthcare shares reached 69% on Thursday. Amazon’s whole deal of 3.9 million dollars to acquire One Medical covers the debt money too.
“There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said in a statement.
However, this is not the first time that Amazon has ventured into the medical field; it had already set its foot in healthcare in 2018 when it bought the online pharmacy Pillpack for $750 million and launched its online pharmacy. In 2021, Amazon started providing medicines to its employees through the Amazon Care facility.
“We love inventing to make what should be easier and easier, and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” Neil Lindsay, the Vice President of Amazon Health Services, said Thursday.
With CoVid19 hitting the people hard, online consultations and medicines have reached a new high. As a result, employers and insurers are looking for better health access for their employees, and this move seems to be a great one by Amazon.
However, like many of Amazon’s handling of privacy issues, this deal also has raised concerns by the critics regarding the same.
Amazon stated that Amir Dan Rubin would remain the CEO of One Medical upon the deal’s completion.
Courtesy: CNBC & The Guardian