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Amazon will acquire a medical clinic in a $39 billion deal

While individual patient records are generally protected under federal health privacy laws, the big data expertise fueling Amazon’s success can be powerful in health care — predicting costs, targeting interventions, and developing products and treatments. To do this, a digital health Dr. Aaron Nienstein said. Expert at the University of California, San Francisco and a member of a federal advisory committee on the issue.

One Medical went public in 2020 at $22.07 per share. After reaching a peak of $ 58.70 last year, its stock price closed at $10.18 on Wednesday. The company, which hasn’t been profitable, recently missed Wall Street’s expectations amid a widespread downturn for health care start-ups.

“Together we look forward to expanding and expanding access to quality health care services,” said Amir Dan Rubin, Chief Executive Officer of One Medical, who will continue in his position after the deal closes. The deal requires approval from regulators and One Medical’s shareholders.

Amazon’s ambitions in health care go back more than two decades. In 1999, Amazon invested in Drugstore.com, the darling of the dot-com bubble, and Amazon founder and then chief executive Jeff Bezos served on the board of Drugstore.com.

But, over the past half decade, Amazon has leaned into its own approach to health care. In 2018, it partnered with JPMorgan and Berkshire Hathaway to launch Haven. Those companies, the country’s three largest employers, set out to find new ways to provide health care to their workforces. The amorphous effort garnered much attention but stalled and was formally ended last year.

Amazon stepped into the $560 billion prescription drug industry when it spent $753 million in 2018 to buy start-up PillPack, an online pharmacy focused on recurring monthly prescription drugs. It later launched Amazon Pharmacy, which, like PillPack, delivers medications, and it offers integrated discounts for customers with Prime memberships.

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