Amazon’s $4B acquisition of Medical One clears regulators in Oregon
Amazon has overcome another step toward acquiring primary care group One Medical for $3.9 billion after the Oregon Housing Authority cleared the deal.
The acquisition, which was originally announced in July 2022, was under scrutiny in Oregon at the end of 2022, with the OHA conducting a 30-day review to “understand how it could affect the cost and quality of healthcare, access to services and health equity,” the agency stated in December. One Medical Group has 182 primary care offices in the United States and is known for its technology-forward services.
The acquisition immediately came under fire from certain lawmakers, including Senator Bernie Sanders (D-VT), who voiced his concerns that Amazon already has too much power. He also urged the Department of Justice to block the deal due to its potential impact on cost and quality of healthcare.
However, the deal passed the smell test from the OHA, giving Amazon further clearance to continue to move forward with the acquisition.
During its review of the deal, the OHA gathered background information about the companies to assess the impact across cost, access, quality and equity. The agency also held a 14-day public comment period, receiving 36 comments. Most of the public comments opposed the transaction, “with many citing concerns about for-profit healthcare companies prioritizing profits over patients,” the OHA stated.
While the agency did approve the transaction, it did note there are potential concerns about equity stemming from the deal.
“This transaction could potentially result in One Medical siphoning off commercially insured patients with higher payment rates from clinics that serve more Medicaid and Medicare-covered patients,” the authority noted.
However, it said these concerns are likely minimal due to the small footprint One Medical has in Oregon.
OHA stated it does not have concerns about price increases resulting from consolidation in the healthcare market, “as the transaction will not meaningfully change Amazon and One Medical’s market share for primary care services in Oregon.”
“OHA has no reason to believe that One Medical will be able to negotiate higher rates because of this transaction,” the agency said.
In addition, the agency is not concerned about reductions to healthcare access as a result of the deal nor much insight into quality concerns.
The Oregon authority approved the deal on the condition that Amazon and One Medical submit information about the services they provide, the patients they serve, quality of care and any governance or organizational changes, with updates every six months for five years following the transaction.
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."