Amazon closes deal to buy health care provider One Medical — FTC still investigating

Amazon has completed the third biggest acquisition in its history.

The online giant has completed its acquisition of One Medical, a membership-based primary health care provider, for $3.9 billion, including debt. The San Francisco company provides in-office and 24/7 virtual care services, on-site labs, and programs for preventive care, chronic care management, common illnesses and mental health concerns have been delighting people for the past 15 years.

The deal, announced in July 2022, comes as Amazon continues to position itself as a provider of health care services. It gives Amazon access to One Medical’s more than 200 brick-and-mortar medical offices in 26 markets, and some 815,000 members.

The acquisition had been undergoing review at the Federal Trade Commission for the past several months. It closed after a deadline passed for the FTC to challenge the deal. However, the agency said it is still investigating the acquisition and could take legal action at a later date.

“The FTC’s investigation of Amazon’s acquisition of One Medical continues,” said FTC spokesman Douglas Farrar in a CNN report. “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.”

In announcing the closure of the deal, Amazon said One Medical will offer new customers annual memberships at the discounted price of $144 for the first year (regularly $199 per year).

“We're on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey,” said Neil Lindsay, senior VP of Amazon Health Services. “One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like. We’re inspired by their human-centered, technology-forward approach and excited to help them continue to grow and serve more patients.”

Amazon’s acquisition of One Medical comes as Walgreens and CVS Health have also made inroads into health care services. In September, CVS  said it has reached an agreement to acquire Signify Health, a provider of home health care, in a deal valued at about $8 billion.

In October, Walgreens became the majority owner of VillageMd, with plans to open hundreds of primary care Village Medical practices at Walgreen locations. Meanwhile, Amazon chief rival Walmart is opening freestanding clinics.

One Medical had $1 billion in net revenue last year, a 68% increase from 2021.

“If you fast forward 10 years from now, people are not going to believe how primary care was administered,” said Amazon CEO Andy Jassy. “For decades, you called your doctor, made an appointment three or four weeks out, drove 15-20 minutes to the doctor, parked your car, signed in and waited several minutes in reception, eventually were placed in an exam room, where you waited another 10-15 minutes before the doctor came in, saw you for five to ten minutes and prescribed medicine, and then you drove 20 minutes to the pharmacy to pick it up—and that’s if you didn’t have to then go see a specialist for additional evaluation, where the process repeated and could take even longer for an appointment, 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.”