Amazon has signed a definitive agreement to acquire hybrid primary care provider One Medical in an all-cash deal worth approximately $3.9 billion. 

One Medical is a membership-based primary care organization that offers virtual care as well in-person visits. The companies said the deal's close is subject to regulatory approval and clearance by One Medical shareholders. CEO Amir Dan Rubin is slated to remain in his position after the acquisition is complete.

"We think healthcare is high on the list of experiences that need reinvention. Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy – we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days," Neil Lindsay, SVP of Amazon Health Services, said in a statement.

THE LARGER TREND

The acquisition marks another dive into healthcare for the retail and tech giant. Earlier this year, Amazon announced it would be expanding its in-person Amazon Care offerings to 20 new cities in 2022, including New York, San Francisco, Chicago and Miami.

The service was originally launched as a virtual medical clinic for its own employees and then expanded across the country. 

But Amazon has a variety of initiatives in healthcare and health tech. Amazon Pharmacy was launched in 2020 after it acquired digital pharmacy PillPack. The company's Alexa voice assistant is being used in health systems and senior living communities, and for monitoring and assisting family members aging at home. It's also competing in the health-tracking wearable and fitness space against other tech giants like Apple.  

Meanwhile, rumors have been swirling that One Medical's parent company, 1Life Healthcare, had been considering takeover options after a possible deal with CVS Health fell through. The primary care company hit the public markets in early 2020 and acquired senior-focused Iora Health last year. 

At HIMSS22 earlier this year, One Medical chief network officer John Singerling said the company looks toward other industries, like tech and hospitality, to center consumers in its design and keep wait times low.

"We don't like using the word waiting rooms," Singerling said. "The [traditional health] system isn't designed around the individuals we serve."

ON THE RECORD

"The opportunity to transform healthcare and improve outcomes by combining One Medical’s human-centered and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention and willingness to invest in the long-term is so exciting," Rubin said in a statement.

"There is an immense opportunity to make the healthcare experience more accessible, affordable and even enjoyable for patients, providers and payers. We look forward to innovating and expanding access to quality healthcare services, together."