Amazon to buy One Medical for $3.9bn

The e-commerce company aims to improve people’s experience when they plan to visit a doctor

Amazon acquired PillPack, a full-service pharmacy, in 2018 for $750 million. AFP

US technology company Amazon will acquire One Medical for $18 a share, in an all-cash transaction that valued the technology-powered primary healthcare provider at about $3.9 billion.

The e-commerce company said it aimed to improve people’s experience when they planned a visit to the doctor by removing various issues related to booking an appointment and long waiting times.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services.

“Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room and then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days,” Mr Lindsay said.

Completion of the transaction is subject to customary closing conditions, including approval by One Medical's shareholders and regulatory approval, the entities said.

Amazon indicated its interest in health care when it acquired PillPack, a full-service pharmacy, in 2018 for $750 million.

In 2020, it launched Amazon Pharmacy, allowing customers to order prescription medicine for home delivery.

San Francisco-based One Medical, which went public in 2020, said it was providing its members improved healthcare services while reducing costs, within a better team environment through technology-powered model.

The company offers its members 24/7 on-demand care through video chat, easy booking of same/next-day appointments in the app, online access to health summaries and care plans, and in-app prescription requests and renewals.

As of March 31, the company has 188 medical offices in 25 markets, and counts 767,000 members. It reported a net loss of $90.9m and a revenue of $254.1m in the March quarter.

“There is an immense opportunity to make the healthcare experience more accessible, affordable, and even enjoyable for patients, providers and payers. We look forward to innovating and expanding access to quality healthcare services, together,” said Amir Dan Rubin, chief executive of One Medical.