Amazon makes $5.6b move into healthcare

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The ecommerce group announced all-cash deal as it continues its expansion into the healthcare sector.

| Amazon on Thursday agreed to buy primary care provider One Medical for $US3.9 billion , expanding the e-commerce giant’s virtual healthcare and adding bricks-and-mortar doctors’ offices for the first time.to become a leading player in the healthcare industry, from becoming an online pharmacy to providing telehealth services.

The online retailer piloted virtual care visits for its staff in Seattle in 2019 before offering services to other employers under the Amazon Care brand. It likewise bought online pharmacy PillPack in 2018, underpinning a prescription delivery and price-comparison site it later launched. Citi analyst Daniel Grosslight said the acquisition made sense because the “blending of virtual and in-person care is core to both One Medical and Amazon Care’s strategy”.Amazon Care recently made its virtual care accessible nationwide and added the option for house calls in Los Angeles, Washington, Dallas and elsewhere. The COVID-19 pandemic helped increase demand as Amazon Care started signing up clients including Hilton Worldwide.

 

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