One Medical will be purchased by Amazon for $18 per share. The deal expands Amazon’s foothold in the healthcare sector.
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According to Neil Lindsay, senior vice president of Amazon Health Services, the transaction expands Amazon’s footprint in the healthcare industry, which is “high on the list of experiences that need reinvention.”
According to Lindsay, the e-commerce behemoth wants to enhance both the patient experience and how customers schedule appointments.
“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” he said.
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In addition to running a network of upscale primary care practices,, One Medical, which went public in 2020, also provides a number of telemedicine services.
According to its most recent quarterly results, it now has 767,000 members and is responsible for 188 medical offices throughout 25 markets. One Medical recorded a first-quarter net loss of $90.9 million on revenue of $254.1 million.
“There is an immense opportunity to make the health care experience more accessible, affordable and even enjoyable for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said in a statement.
Rubin will continue to lead One Medical after the deal is completed.
On Thursday, the parent company of One Medical, 1Life Healthcare, saw a 69 percent increase in shares, which closed the day barely below the purchase price. Prior to the announcement of the agreement, shares of 1Life were selling at $10.18 as of Wednesday’s closure.
On Thursday, the price of Amazon’s stock increased by 1.5%.
When Amazon paid $750 million for PillPack in 2018, it showed a stronger interest in the healthcare industry. Amazon then used the purchase to open its own online pharmacy. The business has also stepped up its Amazon Care telemedicine service and worked to develop at-home medical tests.