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29 Jul 2022

Amazon gets into wellness – acquires One Medical in US$3.9bn deal
BY Frances Marcellin

Amazon has moved further into the wellness market with the acquisition of One Medical for US$3.9bn

Amazon has moved further into the wellness market with the acquisition of One Medical for US$3.9bn
photo: Shutterstock/askarim

Amazon has acquired primary healthcare organisation One Medical in a US$3.9bn deal that will see it moving further into the wellness market.

The move represents the e-commerce giant's next move into the sector, following the growth and development of its nutritional supplements range.

Amazon says it's aiming to 'transform the healthcare experience' by leveraging One Medical’s existing network of healthcare services which currently serves 767,000 members virtually and in-person.

Last year One Medical acquired Iora Health, a primary care group with 47 offices, bringing One Medical’s branches to almost 200 across the US. The membership-based service costs users US$199 per year.

As part of its focus on prevention and wellness One Medical says it starts with a "deep dive" into lifestyle, genetic background and personal goals, "however modest or ambitious they may be". From this holistic perspective, members are guided toward appropriate screening tests, preventive treatments and "lifestyle tweaks" with the aim of maximising happiness and longevity. "We’ll coach you and keep you on track every step of the way," says the company.

Available services include sports medicine and exercise counselling, travel health, cancer screenings, cardiovascular disease screening and prevention, contraception and family planning, diet and nutrition counselling, LGBTQ care, men’s and women's health and sexual health services, screening for metabolic and endocrine disorders and vaccination services.

In addition to working with individuals, One Medical also partners with 8,000 companies, including Airbnb and Google, offering employee health benefits.

“Healthcare is high on the list of experiences that need reinvention,” says Neil Lindsay, SVP of Amazon Health Services. “We love inventing, to make what should be easy, easier and want to be one of the companies which helps dramatically improve the healthcare experience.

“The opportunity to transform healthcare and improve outcomes by combining One Medical’s human-centered and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention and willingness to invest in the long-term is so exciting,” said Amir Dan Rubin, CEO of One Medical.

“There's an immense opportunity to make the experience more accessible, affordable and even enjoyable for patients, providers, and payers. We look forward to innovating and expanding access to quality healthcare services, together.”

On completion of the agreement, Amir Dan Rubin will stay on as CEO at One Medical.

The deal remains subject to approval from regulators and shareholders in One Medical.

Amazon’s previous healthcare acquisition was online pharmacy PillPack in 2018 for US$750m. Following this, the company launched Amazon Pharmacy, which delivers prescriptions, in 2020.

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