Amazon announced Thursday that it has agreed to a deal to acquire One Medical, the primary health care provider that provides an “alternative” to concierge services, for approximately $3.9 billion. As part of the deal, One Medical CEO Amir Dan Rubin will remain on as the provider’s chief executive officer, according to a release.
Amazon, in a statement, said that the health care field was ripe for disruption, since the status quo requires “taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy.”
“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, who runs the company’s health division. “We see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”
“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” he continued.
Amazon has been increasingly interested in the health care space in recent years, putting Lindsay, an Amazon veteran, in control of the division late last year after stints in charge of the Prime subscription business and worldwide marketing. In 2020, the company launched Amazon Pharmacy, which it hoped would improve online ordering of prescription pills. Last year, the company started to offer an internal telehealth service to other companies as well.
One Medical has less than 200 medical offices across the country, but has made a name for itself as a boutique, technology-focused primary care provider with chique offices and a slew of telehealth services. However, the company’s primary appeal is that, for a $199 annual fee, it gives customers relatively easy access to a primary care physician and helps them more easily navigate America’s dysfunctional health care system. For One Medical clients who can afford paying a fee on top of already expensive medical bills, referrals, blood tests, vaccinations, and other basic health care services can easier to obtain.
Dan Rubin, One Medical’s CEO, said the opportunity to take advantage of Amazon’s “customer obsession” was an exciting opportunity. “We look forward to innovating and expanding access to quality healthcare services, together,” he said.