This deal will help Amazon expand its footprint in the healthcare market. Amazon CEO Andy Jassy said that the healthcare industry is set for a disruption amid the complexities of primary care and longer appointment times.
On Wednesday, February 22, e-commerce giant Amazon announced that it closed the deal of acquiring primary care provider One Medical for a staggering $3.9 billion.
Last year in July 2022, Amazon agreed to acquire One Medical to expand its healthcare presence. With this acquisition, Amazon is looking to “dramatically improve” the experience of getting medical care.
As a result, it has been making a move in the healthcare space over the last few years. Back in 2018, Amazon purchased the online pharmacy PillPack for a sum of $750 million. Later, it launched its own virtual clinic for chronic conditions along with offering prescription perks for its Prime members.
With the latest deal, Amazon gets access to One Medical’s more than 200 brick-and-mortar medical offices across 26 markets and more than 825,000 customers.
This is the first major deal announced by Amazon ever since Andy Jassy took the CEO from Jeff Bezos back in July 2021. According to Jassy, healthcare is a major area of expansion for the company. The Amazon CEO also believes that healthcare is ripe for disruption amid the complexities of primary care and longer appointment times. In his statement yesterday, Jassy said:
“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”
FTC Investigates Amazon’s Acquisition of One Medical
The recent closing of the deal by Amazon comes after the closing of the deadline by the Federal Trade Commission (FTC) which is challenging this acquisition. Over the past few months, the FTC has been conducting an in-depth review of the acquisition. In September 2022, the FTC sent Amazon and One Medical another request to disclose more information regarding the deal.
Although Amazon has waited for the desired period as requested by the FTC to close the deal, chances are the regulator could still bring the case at a later point to unwind the merger. The FTC under Chair Lina Khan said that although they can’t hold the merger since the deadline has passed, they will continue to investigate and take legal action at a later stage. FTC spokesman Douglas Farrar said:
“The FTC’s investigation of Amazon’s acquisition of One Medical continues. The commission will continue to look at possible harms to competition created by this merger as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”
The FTC has sent a letter to both the companies involved in the merger stating that they are closing the deal at their own risk. The regulator still has specific concerns regarding the merger. Amazon is still facing an ongoing probe by the FTC over its Prime program.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
