Amazon's two largest acquisitions in its history have been Whole Foods ($13.7 billion) and the recently completed purchase of MGM ($8.45 billion). If this deal goes through, Amazon's third entry on that list will be a $3.9 billion buyout of One Medical, making it the company's third largest acquisition ever.
One member of the Verge team referred to the company as "healthcare for millennials" when they were in the process of weighing whether or not to sign up for the company's main care provider subscription for $199 (which is in addition to insurance, just like any other doctor).
The business plan for One Medical, which is backed by Alphabet's GV unit (which was formerly known as Google Ventures), consists of an app, access to on-demand telehealth services via video at all hours of the day and night, and guaranteed same-day or next-day appointments at more than 125 locations.
Slick videos on YouTube make bold claims about "reimagined" medical facilities that feature cozier furniture.
The following is what is written in the synopsis for this video: "We can't make a visit to the doctor's office feel like a vacation, but we can make the waiting area feel more like a hotel lobby.
Think of bleach-cleanable materials with gentle textures, calming colors, or fascinating patterns, and you'll have an idea of what our design team is really good at when it comes to selecting furniture and textiles that don't appear or feel clinical but nevertheless operate in a clinical atmosphere.
Since the beginning of the coronavirus pandemic, there have been a number of reports published concerning One Medical. Some of these studies indicate that the sheen is less apparent than it was previously.
According to NPR, at the beginning of 2021, it allowed ineligible persons to skip the queue in order to acquire the vaccine. Some patients told The Verge that they were paid for vaccine shots that should have been free of charge.
Amazon's most recent acquisition provides the e-commerce giant with another another entry point into the healthcare industry, which has become one of the company's primary focuses in recent years.
Neil Lindsay, senior vice president of Amazon Health Services, said in a statement, "We think health care is high on the list of experiences that need reinvention."
"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 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." [T]here are lots of opportunities to both improve the quality of the experience and give people back valuable time
Amazon is planning to launch Amazon Pharmacy in 2020 and has recently expanded its Amazon Care telemedicine program across the country. These two initiatives are part of Amazon's larger strategy to compete with the established heavyweights in the healthcare business.
Through the purchase of One Medical, they now have the opportunity to compete in the primary care market as well.
"There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers," said One Medical CEO Amir Dan Rubin in the announcement of the deal. Mr. Rubin will continue to serve in his current capacity as CEO of One Medical after the transaction is finalized.
We look forward to working together to develop new approaches to improving access to high-quality healthcare services.