Amazon to Buy Virtual, In-Person Primary Care Provider One Medical for $3.9B

July 21, 2022 - Amazon has announced plans to buy virtual and in-person primary care organization One Medical for $3.9 billion, or $18 per share, in an all-cash transaction.

One Medical is membership-based, providing direct-to-consumer care through its 188 in-person locations across the country and virtual care options. It also has more than 8,000 employer clients.

According to its latest financial statement, the company ended the first quarter (Q1) of fiscal year 2022 with 767,000 members, a 28 percent increase from Q1 the year prior. Its net revenue totaled $254.1 million in Q1 2022, up from $121 million in the first quarter of fiscal year 2021.

The organization's members have access to a mobile app through which they can schedule appointments, view health records, renew prescriptions, and contact their provider via messaging or video chat. One Medical also offers drop-in laboratory services at its offices.

Last year, One Medical bought Iora Health, a value-based primary care organization geared toward seniors with 47 offices across 10 markets. Before that, One Medical went public in January 2020, raising $245 million in gross proceeds.

"We think healthcare is high on the list of experiences that need reinvention," said Neil Lindsay, senior vice president of Amazon Health Services, in a news release. "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."

Through its acquisition of One Medical, Amazon hopes to widen access to healthcare and "help more people get better care, when and how they need it," Lindsay said.

The acquisition will include One Medical’s net debt. The transaction is subject to customary closing conditions. Post-acquisition, Amir Dan Rubin, current CEO of One Medical, will stay in his position.

However, The Carlyle Group, which had made a minority investment of $350 million in One Medical in 2018, will exit its position as part of the transaction, a person familiar with the matter told mHealthIntelligence. 

This is the latest in a string of healthcare moves Amazon has made this year.

In February, the tech giant signed deals with three businesses — Silicon Labs, TrueBlue, and Whole Foods Market — to offer its telehealth service, Amazon Care, to their employees across the country. Further, the company plans to expand its in-person care services to 20 new cities this year.

Later in February, Amazon partnered with Teladoc Health. They launched voice-activated access to a Teladoc virtual care provider using Alexa-supported devices, such as Echo, Echo Dot, and Echo Show.

Editor's note: This article was updated with information about The Carlyle Group's exit at 12:45 pm ET on July 21.