Amazon said Wednesday it closed its $3.9 billion acquisition of primary care company One Medical.
The deal, announced in July, will significantly boost Amazon’s growing healthcare footprint, which includes Amazon Pharmacy and the recently launched telehealth service Amazon Clinic.
The acquisition had been under scrutiny from antitrust regulators concerned about how Amazon might use data from One Medical clients, The Wall Street Journal reported.
Based in San Francisco, One Medical had 836,000 members and 221 medical offices in the U.S. at the end of December. It posted $1.04 billion in revenue last year, up 68% from the year prior, with a net loss of $144.1 million, up from $34.8 million.
“Customers tell us there is a need to radically improve the health care experience, and we think we can help,” Amazon CEO Andy Jassy said in a letter.
Amazon said One Medical is now available for $144 per year, a 28% discount, as part of a promotion celebrating the acquisition. One Medical memberships are separate from Amazon’s Prime membership program — for now.
The acquisition is Amazon’s third-largest ever, behind its $13.7 billion purchase of Whole Foods in 2017, and its $8.5 billion purchase of Hollywood studio MGM.
Jassy said Amazon would continue investing in healthcare despite its recent layoffs and other cutbacks amid the tech downturn.
Given the size, complexity and potential for technology to further transform the healthcare market, the sector has emerged as one of the most likely industries where Amazon could find a fourth pillar of its business, alongside its existing three: Amazon Web Services, Amazon Prime, and Amazon Marketplace.
But not all of Amazon’s healthcare efforts have been successful. In 2021, the company shut down its Haven healthcare joint venture with Berkshire Hathaway and JPMorgan Chase, and last year it closed its Amazon Care primary care service.
One Medical, which operates under the parent company 1Life Healthcare, had attracted acquisition interest from healthcare and pharmacy giant CVS Health, which said this month it will acquire primary care giant Oak Street Health in a $10.6 billion deal.
One Medical was founded in 2007 by Tom Lee, a medical doctor who grew up in the Seattle area and received his MD from the University of Washington School of Medicine. The company went public in January 2020.
Amir Dan Rubin, One Medical’s CEO for the past six years, continues to lead the company.
