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Amazon’s One Medical making waves in primary care
It has been a busy week for Amazon’s One Medical, the boutique primary health care company that the tech giant purchased for $4 billion in February 2023. The company announced new partnerships with health systems and employer groups, along with a major promotion for Prime members. What does One Medical’s growing presence in the primary care space mean for the health care industry at large?
Deep discounts for Prime members; employers looking to save, too
Amazon Prime members can now receive a $100 discount on a yearly subscription to One Medical. The membership provides access to 24/7 virtual care services, in-office appointments, and on-site labs, and will likely be an attractive option to individuals without health care insurance. (Amazon, 2023)
And with the news that health care costs are forecast to increase 5.4% to 8.5% in 2024 – the biggest increase in a decade – U.S. employers are looking to save money on primary care services for their employees. (Leo, 2023) On November 14, the Health Transformation Alliance (HTA), a collective of large U.S. employers, including Coca-Cola, American Express, and Marriott, announced a partnership with Amazon’s One Medical to offer primary care services to its group of 67 employers and nearly 5 million employees. (Hagen, 2023)
More health system partnerships forged
One Medical has more than 200 clinics and signed agreements with local health systems for specialty referral rights. Such partnerships are positive for the company’s cashflow and create a lucrative referral stream for hospital operators.
Just this week, CommonSpirit Health’s Virginia Mason Franciscan Health announced a collaboration with One Medical to provide specialty care to the online provider’s primary care patients. And on November 14, it was announced that One Medical would work with Hackensack Meridian Health, New Jersey’s largest health network, to open new clinics in partnership with the nonprofit health system and coordinate patient care between primary and specialty care providers. (Hagen, 2023)
Health system executives and industry thought leaders interviewed recently by Becker’s celebrated Amazon’s move to make primary care more accessible and see continuity of care as a possible benefit of the company’s partnerships with health care systems.
Sources:
Amazon. (2023, November 8). Amazon introduces compelling new health care benefit for Prime members for only $9 a month (or $99 a year). [Press release]. https://www.aboutamazon.com/news/retail/one-medical-amazon-prime-benefit
Bruce, G. (2023, November 10). Becker’s Hospital Review. Hospital leaders primed for competition with Amazon. https://www.beckershospitalreview.com/disruptors/hospital-leaders-primed-for-competition-with-amazon.html
Leo, L et al. (2023, September 21). Reuters. US employers to see biggest healthcare cost jump in a decade in 2024. https://www.reuters.com/world/us/us-employers-see-biggest-healthcare-cost-jump-decade-2024-2023-09-20/
Hagen, J. (2023, November 15). Mobi Health News. Amazon’s One Medical announces three new partnerships. https://www.mobihealthnews.com/news/amazons-one-medical-announces-three-new-partnerships