USA – The Federal Trade Commission (FTC) has begun examining Amazon’s deal to purchase One Medical for US$3.9 billion, with the company operating clinics in several US markets.
One Medical disclosed the investigations in a securities filing, saying both companies had received a request on Friday (Sept. 2) for more information about the deal, The Wall Street Journal reported.
The bid for One Medical was the first major acquisition Amazon announced during new CEO Andy Jassy’s tenure, as Jassy had been adamant about getting more into the healthcare business.
With the buy, the eCommerce giant would gain access to over 180 clinics across roughly two dozen new US markets.
However, the FTC investigation may delay the deal — federal competition investigations often take months to finish, with significant antitrust investigations taking around 11 months on average, according to the report.
The agency is also looking into Amazon Prime’s membership program, per a legal petition filed by Amazon last month according to PYMNTS’ report.
The company has made other developments in healthcare as of late, with the One Medical acquisition being the catalyst for it to shut down its Amazon Care service.
Launched in 2019, Amazon Care was an employee-based telehealth service that dispatched healthcare providers to patients’ homes.
The bid for One Medical was the first major acquisition Amazon announced during new CEO Andy Jassy’s tenure, as Jassy had been adamant about getting more into the healthcare business.
When the service was shut down, Senior Vice President Neil Lindsay said in a memo to employees that the decision hadn’t been easy and was made after “many months of careful consideration.”
One Medical is a membership-based primary care practice that offers on-site offices in larger US metro areas, along with telehealth offerings.
Amazon has been trying to compete with rivals such as Walmart, and many companies have been pivoting to try and add new healthcare offerings within their existing businesses.
Amazon also put in a bid to buy in-home healthcare provider Signify Health, which makes use of analytics and tech to provide care for employers, health plans, physician groups, and health systems.
However, as Forbes magazine has reported, CVS has beaten Amazon and other rivals for Signify Health by winning a US$8 billion bid. The deal marks a big push by CVS into the in-home health care space.
Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE
