Amazon takes health one step further by spending nearly $4 billion

The company created by Jeff Bezos is advancing a little further in the field of health by buying One Medical, a company specializing in health and technology. An expenditure of 3.9 billion dollars

Source: Amazon

Amazon has been in the health business for some time, or at least it’s getting close. The company has already released an air quality monitor as well as two smart bracelets, the Halo Band and the Halo View. As reported The world with AFP, in 2019 the e-commerce giant launched Amazon Care, a telemedicine service first reserved for its employees before being extended to all companies in the United States. The following year, he launched Amazon Pharmacy, ” a prescription drug delivery platform“.

This time around, Amazon is taking another step by acquiring One Medical, a “ American private care networkfor the modest sum of 3.9 billion dollars or 3.8 billion euros.

Amazon invests in connected health

The Seattle firm has been thinking about investing for several years; in 2018, Amazon almost embarked on a “ new health care support system with JPMorgan Chase bank and Berkshire Hathaway conglomerate “.

Amazon and One Medical announced on July 21 to have “entered into a definitive merger agreement under which Amazon will acquire One Medical “. In the associated press release, we learn that “One Medical is a national, human-centered, technology-powered primary care organization whose mission is to make quality care more affordable, more accessible and more enjoyable through a seamless combination of in-person, digital and virtual that are convenient where people work, shop and live“.

Neil Lindsay, senior vice president of Amazon’s health services division, said he believes “healthcare is high on the list of experiences that need to be reinvented. Make an appointment, wait weeks or even months to be seen, take time off, […] for what is too often a few rushed minutes […] we see a lot of opportunities to both improve the quality of experience and give people back valuable time in their days“. He intends to carry out this mission with the expertise and technology of One Medical.

A takeover to interfere in the health market

On the side of the company that will integrate Amazon, it describes the same vision. Its CEO Amir Dan Rubin specifies that “there is a huge opportunity to make the healthcare experience more accessible, more affordable and even more enjoyable for patients, providers and payers“. One Medical has a network of more than 180 medical offices across the United States that is used by employees of 8,000 companies, including in telemedicine situations, writes thewall street journal.

The care market represents 4,000 billion dollars in the country, a financial windfall in which Amazon would like to type, especially since it is unlikely that it will decline. For Pierre Harand, partner and Europe-Asia director of the fifty-five consulting firm, “they understood that healthcare was a sector ripe for disruption“, he confides toThe Expressespecially since the markethas not yet really achieved its digital transformation“.

International mailcitedThe Informationwho notes the date of the announcement:Imagine you’re an industry giant under government investigation and want to make it clear to antitrust authorities that you won’t be deterred from continuing to take over companies. What would you do ? Well, you would probably announce the acquisition of a company in a very sensitive industry, dealing with a very sensitive type of data, just before the congressional summer recess, right? This is precisely what Amazon did today“.

Amazon will have to face competition

The challenge for Amazon will also be to internationalize the model it wishes to accelerate with One Medical according to Pierre Harand. In effect, “France, for example, has a very different reimbursement system from that of the United States, it would not be possible to offer exactly the same system here as there.“. This is without taking into account the issues around data protection and that competition exists, in particular with Doctolib.

Amazon is also not the only tech giant to develop its activities around health. With its products and services, Apple has been working for years on its health devices and services, with its Apple Watch or its Health application. On the side of Google, we know that the web giant carries out work around artificial intelligence, for example for the detection of cancer cells. At Microsoft, we focus more on “the provision of technical infrastructures adapted to the needs of the sector (secure cloud, etc.)“.

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