Amazon Continues Health Care Push, Acquires One Medical for $3.9B

Kristin Snyder

Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

One Medical professional finder page on a laptop screen.
Courtesy of One Medical

Amazon is taking over everything. Its latest move: spending $3.9 billion to acquire One Medical.

The Seattle-based retail giant will acquire the San Francisco-based subscription health care provider for $18 per share, the company announced Thursday. The deal covers the health care company’s net debt, and will be complete once it receives regulatory approval and is approved by One Medical's shareholders.


One Medical has 10 clinics across Los Angeles and five in Orange County and has made a name for itself by offering 24/7 telehealth access and guaranteed same or next-day appointments. The company went public in 2020 and has since acquired primary care company Iora Health in a $2.1 billion deal. Expanding throughout Southern California in the past few years, One Medical grew its membership by 34% in 2021.

Telehealth companies saw a boom during the pandemic, and some are pushing to continue coverage for virtual treatments. One Medical, however, faced criticism for letting ineligible people skip the line for vaccines and accidentally charging people for the shot.

Amazon has been eyeing the health care industry for the past few years. The company launched telehealth Amazon Care for its employees in 2019 and earlier this year expanded the program nationally. In 2018, Amazon bought prescription-by-mail company PillPack for $1 billion—a move that caused traditional pharmacies to lose billions in market value.

“We think health care is high on the list of experiences that need reinvention,” said SVP of Amazon Health Services Neil Lindsay in a statement.

This acquisition is Amazon’s third most expensive, behind the $13.7 billion Whole Foods purchase and the $8.5 billion MGM deal. Amir Dan Rubin will stay on as One Medical’s CEO. Since the deal announcement, One Medical shares have surged 68%.

A number of Los Angeles-based startups are working to disrupt the health care industry, with multiple prescriptiondelivery and telehealthcompanies making a name for themselves. Since telehealth is apparently here to stay, making the programs accessible remains a concern.

Subscribe to our newsletter to catch every headline.

Cadence

Online Schooling Set U.S. Kids Back. But LA EdTech Companies See Solutions

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

kid looking at computer screen for online school
Andria Moore

Nationally, kids whose schools met online in the 2020-2021 year performed 13% lower in math and 8% lower in reading compared with kids who had in-person schooling.

Nhon Ma, co-founder of online tutoring platform Numerade believes that this issue will continue to persist unless more students gain access to tutoring outside the classroom.

Read moreShow less

Kroma Wellness Founder Lisa Odenweller on Breaking Into the Nutrition Industry

Yasmin Nouri

Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.

Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.

Kroma Wellness Founder Lisa Odenweller
Image courtesy of Kroma Wellness

On this episode of Behind Her Empire, Lisa Odenweller opens up about her superfood nutrition company, Kroma Wellness, and the difficulties of breaking into the wellness industry.

Odenweller began her career in the wellness space in 2011 when she opened a chain of superfood cafes around Southern California called Beaming Wellness.

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending