The closing of Amazon’s $3.9 billion acquisition of One Medical gives the retail giant entrée into local community healthcare systems.
Across the country, One Medical operates more than 220 primary care offices in more than 28 U.S. markets. The sites include One Medical primary care offices, senior health offices specific for patients covered by Medicare, direct primary care clinics, and primary care offices for specific employee populations, the company says.
And in its more than two dozen metropolitan markets, One Medical has partnered with some of the nation’s largest and well-known locally operated healthcare systems from Mount Sinai Health System in New York and Mass General Brigham in Boston to UCSF Health in San Francisco.
The One Medical partnerships with local healthcare systems provide buyers of its membership healthcare platform a way to access more specialized services that are attractive to commercial health insurers and local employers that might include One Medical-Amazon health and pharmacy services in their health benefit packages.
Relationships with doctors and hospitals in communities across the country could help Amazon’s small but growing healthcare business gain referrals and relationships from more medical care providers. It could also help Amazon gain more relationships with prescribing physicians needed to boost prescriptions for Amazon’s growing Amazon Pharmacy business, which the retailer entered with its 2018 acquisition of PillPack.
In Atlanta, for example, One Medical works in collaboration with the Emory Healthcare Network, which is one of the area’s largest providers of medical care. In New York, One Medical works in collaboration with Mount Sinai Health System and in Chicago, One Medical works in collaboration with Advocate Healthcare, which is the area’s largest provider of medical care.
“The partnership provides One Medical’s Chicago members with streamlined access to Advocate Aurora’s vast, high-quality network of specialists and hospitals,” Advocate and One Medical said when the collaboration was launched three years ago. “Together, the two organizations aim to transform the health care experience through highly coordinated, digitally-enabled care that impacts wellness and value for consumers and employers.”
One Medical’s “partnership” revenue grew 15% last year to $257.6 million compared to $224 million in 2021, the company disclosed in its annual earnings report released earlier this week. Though One Medical continued to lose money last year, its total revenue eclipsed $1 billion for the first time, soaring 68% to $1.05 billion compared to $623.3 million in the year-ago period.
Thus far, the local healthcare systems haven’t seen One Medical as a threat but rather a partner that compliments what they already have locally. This will be key as the healthcare industry is working to address social determinants of health and pursue the value-based approach to providing healthcare services that emphasizes healthcare in the right place, at the right time and in the right amount.
“We now set our sights on delivering even further positive impacts for consumers, employers, care teams, and health networks, as we join Amazon with its long-term orientation, history of invention, and passion for reimagining a better future,” One Medical chief executive Amir Dan Rubin said in announcing the deal’s closing Wednesday.
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