Amazon Buys Virtual Healthcare Provider One Medical
- Amazon on Thurs. announced a $3.9B deal to acquire One Medical, a membership-based service offering virtual and in-person visits, in its newest healthcare endeavor after buying online pharmacy PillPack in 2018.
- One Medical gained traction during the pandemic when it was near impossible to make a physical visit to the doctor, offering patients a membership fee of $199 a year for 24/7 virtual access to providers.
- In its Q1 earnings report, One Medical had about 767k members and 188 medical offices in 25 cities, but was shown to have run a net loss of $90.9M after pulling in $254.1M in revenue.
- Shares of One Medical jumped on Wed. after Amazon announced their offer, with the price of 1Life Healthcare, One Medical’s parent company, jumping as much as 68% to around $17 on Thurs. morning.
- Amazon says it hopes to improve how people book medical appointments and the experience of seeing a doctor, with senior VP of Amazon Health Services, Neil Lindsay, saying it’s “high on the list of experiences that need reinvention.”
- This would be the third largest acquisition by Amazon, trailing its purchases of Whole Foods and MGM for $13.7B and $8.5B, respectively.
And these are the key narratives that have emerged for this story:
- Pro-establishment narrative as provided by Independent: This is an exciting opportunity for Amazon to make healthcare more accessible, affordable, and even enjoyable for patients, providers, and payers.
- Establishment-critical narrative as provided by Market Watch: This will only expand Amazon’s control over people’s private information. If regulators don’t block the purchase, Amazon will be able to track and exploit people ever more intrusively.
- Nerd narrative as provided by Metaculus: There is a 41% chance the US federal government will pass legislation by 2040 to provide universal healthcare for American citizens, according to the Metaculus Prediction Community.