Amazon’s $3.9B acquisition of One Medical under review in Oregon
The state of Oregon is taking a hard look at the proposed acquisition of One Medical by Amazon. The deal is valued at $3.9 billion.
Amazon previously announced its plan to acquire One Medical, a technology-forward primary care company with 182 primary care offices in the U.S., in July. Following news of the proposed acquisition, Amazon announced it would close its Amazon Care business by the end of the year. Amazon Care offered in-person and virtual healthcare services for its employees before expanding to the public in several markets.
The acquisition of One Medical sparked criticism from lawmakers within days of its announcement, with some voicing concerns over Amazon’s colossal scale and potential monopoly status. And now, the state of Oregon is reviewing the proposed deal, and the Oregon Health Authority (OHA) will decide whether or not the deal should proceed after a review. One Medical operates five locations in Oregon.
“OHA will conduct a 30-day review of the deal to understand how it could affect the cost and quality of healthcare, access to services and health equity,” the OHA stated. “During the review, OHA will use healthcare data, news and media reports, information from the companies, and input from the public to decide whether the deal should be approved.”
The deal will make Amazon the owner of 1Life Healthcare, the parent company of One Medical. Amazon has stated it hopes the acquisition will enable it to provide more affordable and accessible in-person, digital and virtual healthcare services, without reducing the type of healthcare services One Medical currently provides and retaining One Medical employees and contractors once the deal closes.
OHA also stated it is seeking public input by Dec. 14, 2022.
“Your feedback can help us understand how this business deal could help or harm people in your community,” the agency stated.
OHA’s review of the deal comes as more healthcare deals are coming under fire. Mass consolidation across the healthcare industry over the past several years has raised concerns about the impact on healthcare costs and care quality. Some studies have shown that consolidation has led to higher prices in some areas where market competition has been dampened. Amazon’s acquisition of One Medical could face more scrutiny.
Last year, the Federal Trade Commission sued to stop Illumina’s $7.1 billion acquisition of life sciences firm Grail, and the company is still facing challenges from regulators about the deal. In 2017, a federal judge blocked an acquisition deal worth $54 billion between insurance giants Anthem and Cigna. More recently, a proposed merger between Dartmouth-Hitchcock Health and GraniteOne Health was canceled after the New Hampshire Attorney General's Office issued a report that it objected to the merger on the basis that it violates New Hampshire law.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."