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Amazon to Acquire US Healthcare Provider One Medical for $3.9 Billion

Amazon introduced Thursday it’ll purchase the first care organisation One Medical in a deal valued roughly at $3.9 billion (almost Rs. 31,100 crore), marking one other enlargement for the retailer into well being care providers.

The Seattle-based e-commerce big mentioned in a press release it’ll purchase One Medical for $18 (almost Rs. 1,400) per share in an all-cash transaction. It’s one in all Amazon’s largest acquisitions, following its $13.7 billion (almost Rs. 1,09,400 crore) deal to purchase Complete Meals in 2017 and its $8.5 billion (almost Rs. 67,800 crore) buy of Hollywood studio MGM, which closed earlier this 12 months.

One Medical, whose dad or mum firm is the San-Francisco based mostly 1Life Healthcare, is a membership-based service that provides digital care in addition to in-person visits. It additionally works with greater than 8,000 corporations to supply its well being advantages to staff.

As of this March, One Medical had about 767,000 members and 188 medical workplaces in 25 markets, in response to its first-quarter earnings report, which additionally confirmed the corporate had incurred a web losses of $90.9 million (almost Rs. 700 crore) after pulling in $254.1 million (almost Rs. 2,000 crore) in income. The whole deal worth introduced Thursday consists of One Medical’s debt.

Neil Lindsay, the senior vice chairman of Amazon Well being Companies, mentioned in a press release the acquisition is geared in the direction of reinventing the healthcare “expertise” for issues like reserving an appointment and taking journeys to the pharmacy.

“We love inventing to make what must be straightforward simpler and we need to be one of many corporations that helps dramatically enhance the healthcare expertise over the following a number of years,” Lindsay mentioned.

General, shopper demand for telemedicine and digital well being care care visits has exploded in the course of the COVID-19 pandemic. Well being care invoice payers like employers and insurers are additionally changing into extra targeted on bettering entry to affected person care and ensuring their sufferers keep tuned in to their well being, see their docs recurrently and take their prescriptions.

Well being care prices have risen sooner than wages and inflation for years and symbolize an enormous expense to employers that supply protection. Employers and insurers suppose that by connecting folks to common care, they will stop costly hospital stays from occurring or hold power circumstances like diabetes from main to larger issues.

For Amazon, the acquisition deepens its foray into well being care providers. In 2020, the retail colossus opened a web based drug retailer that enables clients to order remedy or prescription refills, and have them delivered to their entrance door in a few days. Final 12 months, it started providing its Amazon Care telemedicine program to employers nationwide.

The deal is topic to regulatory approval. On completion, Amazon mentioned One Medical’s CEO Amir Dan Rubin will stay in his place.

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