Amazon closed a $1.9b deal to acquire OneMedical. Consumers who buy their books, clothing, electronics, sporting goods, jewelry, groceries (and almost everything else under the sun) will soon be able to get their health care and medications from the mega retailer.
OneMedical is a primary health care provider that offers 24/7 access to on-demand virtual health services and also guarantees same- or next-day appointments in person. It has more than 125 offices across the country. Amazon announced plans to buy One Medical in July 2022. Fast forward to this week, when the FTC said it wouldn’t challenge the deal. Now, the merger marks a giant leap into the health care industry for Amazon. The move has already had an effect as Amazon’s stock went up 2% during morning trading hours after the deal went through.
What does this mean?
A membership to OneMedical can be purchased on Amazon’s homepage. The $144/yr. (special discount from the standard cost of $199/yr.) lets members enjoy 24/7 virtual care via messaging or video, online appointment booking, on-demand video chat and in-app prescription requests and renewals. Clients also receive drop-in lab services.
Amazon appears to be giving new meaning to ‘one-stop shop.’ People will be able to get their health care and medication, and just about everything else all from one company. Amazon said it hopes the merger can make health care more “convenient for everyone” amid challenges in the industry (think: long wait times for appointments). The FTC says they are worried that Amazon’s access to “sensitive consumer health information” could be misused for things like targeted advertising. The agency warned that although the deal closed, they will continue to investigate the acquisition to make sure no antitrust laws are broken. It’s possible that Amazon’s takeover could face challenges from the government in the future.
The foray into healthcare isn’t new for Amazon – it has spent years dipping its toes into the health care industry — from launching its in-house pharmacy services to custom Alexa programming for hospitals and retirement communities. This new deal opens the potential for the online retailer to follow patients every step of the way.