Amazon says it has completed US$3.49 billion deal for One Medical

AMAZON.COM says it has completed its purchase of One Medical parent 1Life Healthcare, sealing the US$3.49 billion acquisition after the US Federal Trade Commission (FTC) declined to challenge it.

The deal gives the e-commerce giant a network of primary-care doctors, Amazon’s biggest move to date into the health care industry. One Medical operates more than 200 medical offices in 26 markets in the US. Customers pay a subscription fee for access to its physicians and digital health services.

Bloomberg reported on Tuesday (Feb 21) that the FTC, which has been probing Amazon’s market power for years, had decided not to challenge the deal. Instead the agency is issuing a letter warning Amazon and One Medical that the FTC investigation remains open. That paved the way for Amazon to finalise the acquisition.

“One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like,” Neil Lindsay, chief of Amazon Health Services, said in a statement. “We’re inspired by their human-centreed, technology-forward approach and excited to help them continue to grow and serve more patients.”

Amazon’s other health offerings include Amazon Pharmacy – developed from the assets of the pharmacy startup PillPack acquired in 2018 – and Amazon Clinic, a referral service that points patients to partner doctors for text-chat consultations for treatment of common, relatively mild maladies such as hair loss and acne.

Amir Dan Rubin will remain One Medical’s chief executive officer and will report to Lindsay. The company said in a statement that it would offer discounted One Medical memberships for a limited time, offering new customers the package for US$144 for the first year, down from a regular price of US$199. BLOOMBERG