Amazon makes deeper health push with $3.49Bbn One Medical deal

by | Jul 21, 2022 | World

One Medical, whose parent is called 1Life Healthcare Inc, operates 182 medical offices in 25 markets in the US.By Matt Day and John TozziBloombergPublished On 21 Jul 202221 Jul 2022Amazon.com Inc. announced it would buy primary-care company One Medical for $18 a share, the latest move by the e-commerce giant to muscle into the healthcare market.
The all-cash transaction is valued at approximately $3.9 billion, including One Medical’s net debt, Amazon said in a statement Thursday.
One Medical, whose parent is called 1Life Healthcare Inc., operates 182 medical offices in 25 markets in the US. Customers pay a subscription fee for access to its physicians and round-the-clock digital health services.
“We think healthcare is high on the list of experiences that need reinvention,” said Neil Lindsay, the senior vice president leading Amazon’s healthcare push.
Amazon in recent years has launched an online drug store, following its acquisition of mail-order pharmacy PillPack Inc., and started a primary-care clinic for its employees and some other companies, among other health-focused initiatives. The One Medical deal would be Amazon’s third-biggest acquisition, trailing only its purchases of organic grocer Whole Foods Market and film studio Metro-Goldwyn-Mayer.
One of the least-profitable areas in medicine, primary care has been attracting investment from retailers, health insurers and drugstore chains. CVS Health Corp. and Walgreens Boots Alliance Inc., which are both adding primary-care services to their stores, fell on the news. Walgreens, which last year agreed to pay $5.2 billion for a controlling stake in clinic chain VillageMD, fell 3.1% as the market opened in New York, CVS lost about 2.7%, and Teladoc Health Inc. dipped 7.9%.
Amazon shares rose less than 1%, and 1Life H …

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