One Medical Explained

1Life Healthcare, Inc.
Type:Subsidiary
Parent:Amazon, Inc.
Industry:Primary healthcare
Traded As:NASDAQ:
Trade Name:One Medical
Predecessors:-->
Founded:, San Francisco, California, U.S.
Founder:Tom Lee
Founders:-->
Hq Location:One Embarcadero Center
San Francisco
Areas Served:-->
Key People:Trent Green (CEO)
Owners:-->
Revenue: (2022)
Operating Income: (2022)
Net Income: (2022)
Assets: (2022)
Equity: (2022)
Num Employees:3,698 (2022)
Footnotes:[1] [2]

1Life Healthcare, Inc. (doing business as One Medical), is Amazon's chain of primary healthcare clinics.[3] [4] One Medical is a membership-based primary care service with in-person care and online resources, including a mobile app.[5] In February 2023, it was acquired by Amazon.[6]

History

One Medical was founded by Tom Lee in 2007. The company grew from a single San Francisco clinic to more than 72 locations across the United States, including 29 clinics in the greater San Francisco Bay Area.[7] 1Life Healthcare, Inc. serves as an administrative and managerial services company for physician-owned professional corporations (PCs).[8]

In 2017, Amir Rubin succeeded Tom Lee as CEO of One Medical. In 2018, The Carlyle Group invested $350 million in the company. One Medical was also backed by Google's parent company Alphabet Inc.

On January 31, 2020, One Medical began trading on the Nasdaq stock exchange.[9] [10]

During the early stages of vaccine distribution, One Medical was accused of administering the COVID-19 vaccine to ineligible patients in several states.[11] This resulted in a Congressional investigation.[12] [13] The investigation concluded that One Medical sought to use its access to COVID vaccines for financial gain, by pushing those looking for vaccines towards its own paid memberships, and that it provided early access vaccines to those with insider connections at the company.[14]

In September 2021, One Medical acquired Iora Health.[15]

Acquisition by Amazon

In July 2022, it was announced that Amazon, Inc. agreed to acquire One Medical for about $3.9 billion in an all-cash deal.[16] Prior to the announcement, pharmacy chain CVS Health had also bid for the company.[17] Amazon formally acquired One Medical on February 22, 2023.

In November 2023, Amazon began offering discounted One Medical memberships to Amazon Prime customers.[18] [19] [20] [21]

Reaction

Following news of the acquisition, several commentators and public advocacy groups expressed concern that the deal would harm patient privacy.[22] [23] U.S. Senator Josh Hawley, a Republican from Missouri, urged the Federal Trade Commission (FTC) to scrutinize the deal.[24]

Oregon's health agency, the Oregon Health Authority (OHA) was empowered to assess the deal as there were five One Medical clinics operating in the state as of 2022. In December 2022, the OHA ultimately concluded in its preliminary review of the acquisition that the acquisition would not lead to a substantial reduction in affordable healthcare in the state. As such, the OHA approved the acquisition.[25]

In 2023, One Medical was listed as a sponsor of Tru Con, an annual conference of the Truman Center, a national security think tank.[26]

Antitrust scrutiny

Following the announcement of the acquisition, observers speculated that the deal may face antitrust scrutiny. In September 2022, a SEC filing by 1Life Healthcare revealed that the FTC had begun a probe into the deal.[27]

On February 21, 2023, the FTC ultimately declined to challenge the deal with an antitrust lawsuit before the acquisition was completed.[28] The acquisition was officially completed the next day, on February 22, 2023. The FTC clarified that it is still investigating the merger and may still choose to challenge the acquisition.

Notes and References

  1. Web site: 1Life Healthcare Inc. 2022 Annual Report (Form 10-K) . 22 February 2023 . U.S. Securities and Exchange Commission.
  2. Web site: Amazon's $3.9 billion One Medical acquisition is already raising data privacy concerns . 21 July 2022 . . Clint . Rainey.
  3. News: Farr . Christina . Sherman . Alex . One Medical, the health clinic chain backed by Alphabet, has hired banks ahead of an IPO . November 6, 2019 . . October 8, 2019.
  4. News: Truong . Kevin . Google-backed One Medical reportedly gearing up for IPO . November 6, 2019 . . October 8, 2019.
  5. News: Tozzi . John . Carlyle-Backed One Medical Tackles Costs With Hospital Deals . November 6, 2019 . . March 20, 2019.
  6. News: Dey . Mrinmay . Dastin . Jeffrey . 22 February 2023 . Amazon completes One Medical takeover after FTC nod, discounts membership . Reuters .
  7. News: Farr . Christina . How tech-infused primary care centers turned One Medical into a $2 billion business . November 6, 2019 . . July 28, 2019.
  8. Web site: 2023 . 1Life Healthcare Inc . 2023-01-30 . CNBC . en.
  9. News: Shen . Lucinda . On a terrible day for stocks, One Medical sees its stock pop 47% from the IPO price . February 2, 2020 . . January 31, 2020.
  10. News: 2020-01-31. Google-Backed 1Life Healthcare Surges 58% in Trading Debut. en. Bloomberg.com. 2020-10-14.
  11. Web site: High-End Medical Provider Let Ineligible People Skip COVID-19 Vaccine Line. Tim Mak. February 24, 2021. NPR.
  12. Web site: One Medical's Coronavirus Vaccine Practices Spark Congressional Investigation. Tim Mak. March 2, 2021. NPR.
  13. Web site: House panel investigates One Medical for allegedly letting rich clients cut Covid vaccine line. Will Feuer. March 2, 2021. CNBC.
  14. Web site: Select Subcommittee Releases Findings From Investigation Into One Medical's Administration Of Coronavirus Vaccines.
  15. News: 1Life Healthcare, Inc. . One Medical Completes Acquisition of Iora Health . September 16, 2021 . . September 1, 2021.
  16. Web site: Amazon to buy primary health-care provider One Medical for roughly $3.9 billion . July 21, 2022 . . Palmer . Annie.
  17. News: Davis . Michelle F . CVS Was Mystery Bidder for One Medical Before Amazon Struck Deal . 11 August 2022 . Bloomberg . 10 August 2022 . en.
  18. News: O'Donovan . Caroline . Amazon links One Medical primary care to Prime memberships . 19 November 2023 . Washington Post . 9 November 2023.
  19. News: Palmer . Annie . Amazon beefs up Prime loyalty program with One Medical discount . 19 November 2023 . CNBC . 8 November 2023 . en.
  20. News: Welch . Chris . Amazon's latest Prime perk is a $100 discount on One Medical . 19 November 2023 . The Verge . 8 November 2023 . en.
  21. News: Amazon's Doctor Will See You: What to Know About One Medical . 19 November 2023 . CNET . en.
  22. News: Fowler . Geoffrey A. . 2022-07-22 . Perspective Amazon just bought my doctor's office. That makes me very nervous. . en-US . Washington Post . 2023-02-23 . 0190-8286.
  23. Web site: Contreras . Briana . August 4, 2022 . Public Citizen Advises US Decision-Makers Investigate Amazon-One Medical Merger . February 22, 2023 . Managed Healthcare Executive . en.
  24. Web site: Vittorio . Andrea . 2022-07-28 . Amazon, One Medical Deal Raises Data Issue, Hawley Tells FTC (1) . 2023-02-23 . Bloomberg Law . en.
  25. Web site: Rosenblatt . Lauren . 2022-12-28 . Oregon health agency approves Amazon, One Medical acquisition . 2023-02-23 . The Seattle Times . en-US.
  26. Web site: Tru Con 2023 Website .
  27. News: Muoio . Dave . 2022-09-06 . Amazon's $3.9B One Medical purchase is being reviewed by FTC, filings show . en . Fierce Healthcare . 2023-02-23.
  28. Web site: Fung . Brian . 2023-02-22 . Amazon closes $3.9 billion deal to acquire One Medical CNN Business . 2023-02-23 . CNN . en.

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