- Amazon’s announced purchase of One Medical for nearly $4 billion should spur providers to fortify their primary care strategies.
- Although Amazon is a colossus across multiple industries and One Medical has rapidly grown as a primary care provider, there are questions about the combined entity’s ability to succeed as envisioned.
- Telehealth and digital health will be key areas for providers to consider in response to the deal.
The transformative impact of Amazon’s announced $3.9 billion acquisition of One Medical is uncertain, but healthcare stakeholders should be aware of the potential consequences.
The all-cash deal, which still must secure approval from federal regulators and One Medical’s shareholders, could hasten the evolution of primary care to a model that’s more mobile, digital and accessible.
When it was announced July 21, the transaction “likely had every hospital CEO waking up and saying, ‘Is my primary care strategy solid?’” Nicole Bengtson, managing director with Huron and leader of the company’s care transformation team, said in an interview.
“Obviously, One Medical is in some key markets. Hospitals will need to lock up primary care providers and almost go to Amazon as a block to provide local services. If not, there absolutely is an opportunity that One Medical [will be] placed in their markets, and they potentially could lose market share.”
But Francois de Brantes, MBA, senior vice president with Signify Health, said the Amazon-One Medical combination has much to prove before it can create significant upheaval for legacy providers.
“The jury is out on whether they’ll create that true value proposition for employers that shows that they can moderate [cost] trend rates,” de Brantes said July 29 during a discussion at the National Primary Care Transformation Summit. “If they can do that, then everyone should be shaking in their boots.”