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Amazon to Acquire One Medical Clinics in $39 Billion Deal

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While individual patient records are generally protected under federal health privacy laws, the massive data expertise that has fueled Amazon’s success will be powerful in health care — for predicting costs, targeting interventions and developing products and coverings, said Dr. Aaron Neinstein, a digital health expert on the University of California, San Francisco and a member of a federal advisory committee on the problem.

One Medical went public in 2020 at $22.07 a share. After hitting a peak of $58.70 last 12 months, its stock price closed on Wednesday at $10.18. The corporate, which is just not profitable, has missed recent Wall Street expectations amid a broader downturn for health care start-ups.

“We stay up for innovating and expanding access to quality health care services together,” said One Medical’s chief executive, Amir Dan Rubin, who will remain in his post after the deal closes. The deal requires approval from regulators and from One Medical’s shareholders.

Amazon’s ambitions in health care return greater than 20 years. In 1999, Amazon invested in Drugstore.com, a darling of the dot-com bubble, and Jeff Bezos, Amazon’s founder after which its chief executive, served on Drugstore.com’s board.

But, up to now half-decade, Amazon has leaned into its own vision for health care. In 2018, it began Haven, a partnership with J.P. Morgan and Berkshire Hathaway. Those firms, three of the country’s largest employers, got down to explore latest ways to deliver health care to their work forces. The amorphous effort attracted numerous attention but stalled out and formally ended last 12 months.

Amazon moved into the $560 billion prescription drug industry when it spent $753 million in 2018 to purchase the start-up PillPack, a web based pharmacy that focuses on recurring monthly medications. It later began Amazon Pharmacy, which, like PillPack, delivers medications, and it integrated discounts for purchasers with Prime memberships.

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