One Medical
| Company type | Subsidiary |
|---|---|
| Industry | Healthcare |
| Predecessor | One Medical |
| Founded | 2007 |
| Founder | Tom Lee |
| Fate | Acquired by Amazon in February 2023 |
| Headquarters | San Francisco , United States |
Area served | United States |
Key people | Trent Green (CEO) |
| Products | Primary healthcare services, digital health tools, mobile application |
| Owner | Amazon |
Number of employees | 3,700 |
| Parent | Amazon |
Amazon One Medical is a primary healthcare provider owned by Amazon, delivering both face-to-face medical services and digital tools, including a dedicated mobile application. Established in 2007 by 1Life Healthcare, Inc., it was acquired by Amazon in February 2023 and subsequently incorporated into the benefits available to Amazon Prime members. The organization mainly operates clinics across the United States and aims to merge technological innovation with healthcare to enhance patient convenience and accessibility.
In 2022, Amazon One Medical reported revenues of US$1.05 billion but incurred operating losses amounting to US$420 million, reflecting its continued focus on investing in growth initiatives. The company’s headquarters are located at One Embarcadero Center in San Francisco, employing roughly 3,700 individuals. Led by CEO Trent Green, the firm’s strategy centers on utilizing Amazon’s extensive resources and technological capabilities to improve primary care services, catering to a wide consumer base through subscription models.
The acquisition of One Medical significantly expands Amazon’s presence in the healthcare sector, positioning the company as a key contender in primary care by leveraging its integration within Amazon’s vast global network and digital infrastructure.
History
Founded by Tom Lee in 2007, One Medical grew from a single clinic in San Francisco to over 72 locations nationwide, including 29 sites within the greater San Francisco Bay Area. Administrative functions are managed by 1Life Healthcare, Inc., which supports physician-owned professional corporations.
Amir Rubin succeeded Lee as CEO in 2017. In 2018, the company attracted a $350 million investment from The Carlyle Group and received financial support from Alphabet Inc., the parent company of Google. One Medical went public on the Nasdaq exchange on January 31, 2020.
During the initial COVID-19 vaccine rollout, the company faced scrutiny for allegedly vaccinating individuals who were not eligible, prompting a Congressional investigation. The findings revealed that One Medical used vaccine access as a means to promote its paid membership program and provided early vaccinations to insiders.
In September 2021, One Medical expanded its offerings through the acquisition of Iora Health. By 2024, Amazon merged its telehealth service Amazon Clinic into One Medical as a pay-per-visit option, strengthening its digital healthcare portfolio.
Acquisition by Amazon
In July 2022, Amazon, Inc. announced plans to acquire One Medical for approximately $3.9 billion in an all-cash deal. Prior to Amazon’s bid, pharmacy giant CVS Health also expressed interest. The acquisition was finalized on February 22, 2023.
By November 2023, Amazon had fully integrated One Medical into its platform, providing discounted membership options to Amazon Prime subscribers as part of its strategy to boost Prime customer loyalty through expanded healthcare offerings.
Reaction
The deal sparked concerns among analysts and advocacy organizations regarding potential threats to patient privacy. U.S. Senator Josh Hawley urged the Federal Trade Commission (FTC) to conduct a thorough examination of the transaction due to data security considerations.
The Oregon Health Authority (OHA), responsible for overseeing five One Medical clinics in Oregon, reviewed the acquisition and determined it would not substantially impact affordable healthcare access within the state, thereby granting approval.
In 2023, One Medical served as a sponsor for Tru Con, an annual conference organized by the Truman Center, demonstrating its involvement in broader healthcare policy and industry dialogues.
Antitrust scrutiny
After the acquisition was announced, the transaction came under possible antitrust examination. In September 2022, 1Life Healthcare disclosed in an SEC filing that the Federal Trade Commission had launched an investigation into the deal.
On February 21, 2023, the FTC decided not to file an antitrust lawsuit to block the $3.9 billion acquisition prior to its finalization. The transaction was formally completed on February 22, 2023. Nevertheless, the FTC stated that it continues to review the matter and might opt to challenge the merger at a later stage.