Amazon agrees to buy primary healthcare provider One Medical for $3.9 billion in cash

Shawn Knight

Posts: 14,324   +163
Staff member
What just happened? Amazon has agreed to purchase One Medical, a human-centered, technology-powered primary care organization that makes healthcare more affordable and accessible through a combination of in-person, digital and virtual services.

Neil Lindsay, SVP of Amazon Health Services, said they believe health care is high on the list of experiences that need to be reinvented. The typical process for seeing a doctor today involved booking an appointment and having to wait weeks or months to be seen. There's also the hassle of having to take off work, drive to a clinic, find a parking spot, and wait in the waiting room before being transferred to an exam room, only to spend a rushed few minutes speaking to a physician.

It doesn't end there, however, as you may also have to go to a pharmacy and deal with everything that entails.

The deal is notable for being the first major acquisition under Andy Jassy, who replaced founder Jeff Bezos as CEO last summer. Jassy has been with Amazon since 1997 and was instrumental in helping the company launch its web services business.

It's not Amazon's first foray into the potentially lucrative health industry. In 2018, Amazon purchased an online pharmacy called PillPack that delivers medications in pre-sorted dose packaging directly to your door. In November 2019, Amazon changed the name of the service to PillPack by Amazon Pharmacy.

One Medical went public in early 2020 at around $22 per share. Value peaked in February 2021 at $58.70 but has since slid considerably.

The all-cash deal is valued at roughly $3.9 billion, or $18 per share. That represents nearly a 77 percent premium over the stock's closing price of $10.18 at the end of trading on Wednesday. The acquisition is subject to regulatory and shareholder approval as well as customary closing conditions. Amir Dan Rubin will remain CEO of One Medical once the deal is complete.

Image credit: Tima Miroshnichenko, Artem Podrez

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Uncle Al

Posts: 9,072   +8,101
If they can do to the practice of medicine what they have done to prescription drugs, it will be a God send to everyone that ever needs medical care! I say BRING IT ON!
 

Neatfeatguy

Posts: 927   +1,607
They will turn a clinic visit into an automated walk in, RFID scans you, determines what your ailment is, prescribe you a medication and bill you for everything without having any human interaction as you walk out of the clinic and back to your car with your prescription in hand.

You think Amazon was doing a no checkout grocery store for the good of the company? They were doing it for expanding into the automated medical field.