E-commerce giant Amazon announced its acquisition of primary care provider One Medical on Wednesday in a $3.9 billion deal that makes Amazon an even bigger player in the healthcare world.
The landmark deal was initially agreed upon last July and allows Amazon to begin offering all of One Medical’s services, including in-office and 24/7 virtual care, on-site labs, programs for preventive care, and more.
For Amazon, the deal was finalized just hours after the Federal Trade Commission said it would not challenge the purchase, adding that regulators were still investigating potential competitive and consumer harms of the transaction.
“The FTC’s investigation of Amazon’s acquisition of One Medical continues,” FTC spokesman Douglas Farrar told CNN. “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 sent a letter to the companies warning them that the parties are closing the deal at their own risk and that the agency could still decide to bring a case to unwind the merger at a later point reports CNBC.
One Medical is home to more than 200 brick-and-mortar doctors’ offices in 26 markets, giving Amazon a greater physical presence in communities, along with nearly 815,000 members already subscribed to the popular medical clinic.
“The opportunity to transform health care 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,” One Medical’s CEO, Amir Dan Rubin, said in a 2022 statement.
Upon the finalization of the acquisition, Amazon announced a discounted rate for U.S. users of One Medical, lowering the price to $144 from $199 for their first year. The rate is available to all customers regardless of whether they’re an existing Prime member.
“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,” Neil Lindsay, senior vice president of Amazon Health Services, said in a release.
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