Amazon delves into health. On July 21, 2022, the e-commerce giant announced that it wants to acquire One Medical for $3.9 billion. This acquisition is subject to regulatory approval.
Digital and physical offer
“Booking an appointment, waiting weeks or even months for an appointment, skipping work, going to the clinic, looking for a parking space, waiting in the waiting room and then in the examination room to spend a few minutes with a doctor who is often in a hurry,” summarizes Neil. Lindsay, senior vice president of Amazon Health Services, on the experience of providing healthcare in the United States. An experience that One Medical intends to intensify.
The company, founded in 2007, combines a personalized care offering from conveniently located offices with digital healthcare services to provide more affordable and accessible care. The solution also simplifies appointment scheduling, prescription refill requests, access to up-to-date medical records, and more. One Medical has two models: selling services directly to patients and selling services to companies. He claims that his BtoBtoC offering has 8,000 client companies.
Amazon does not disclose its plans for One Medical. Will the company remain independent or will it integrate Amazon’s healthcare strategy? One thing’s for sure, this isn’t Amazon’s first foray into healthcare. The Seattle-based company appears determined to digitize the sector with a range of offerings and products.
Development of Amazon Care
Amazon acquired telemedicine startup Health Navigator in September 2019. Following this acquisition, the e-commerce company launched Amazon Care, an employee health clinic at its headquarters in February 2020. Finally, this medical teleconsultation service has been opened to all companies in the United States. A service that has very little chance of appearing on the European market due to the General Data Protection Regulation (GDPR). It is likely that One Medical will expand this service by adding pharmacies to its offering.
Closer to its capabilities, Amazon launched Amazon Pharmacy, a prescription drug sales and delivery service in the US, after acquiring PillPack. The e-commerce giant is also trying out related objects with its Halo bracelet. The bracelet in the form of a rectangular sensor does not have a screen, but is connected to the application. It is designed to evaluate the physical and mental health of the person who wears it (measuring heart rate, sleep cycles, body fat, etc.). More broadly, the companies behind these connected properties are promising extensive home monitoring. In the United States, some insurance companies offer this type of connected facility to their customers.
Benefits of your cloud
When it comes to digital health, Amazon has a significant advantage: its servers and the AWS cloud platform. On this topic, last summer in the USA they even launched their HealthLake platform. Designed for healthcare organizations, it enables patient health data to be processed using machine learning systems that transform raw data into relevant medical information.
Many tech companies, starting with Gafam, are eyeing this juicy health market. US software publisher Oracle recently broke the bank by buying electronic health record specialist Cerner for $28.3 billion.