The acquisition, announced last July, gives the online
retailer a virtual health offering as well as offices for in-person medical
services for the first time.
It reflects Amazon's long-held ambition to greatly simplify
how consumers navigate healthcare in the United States, a lofty goal it has yet
to realize even as the company has rolled out a virtual pharmacy and other
programs.
In a statement, Amazon's Chief Executive Andy Jassy said the
deal would help the company improve, speed up and personalize care for
patients. "If you fast forward 10 years from now, people are not going to
believe how primary care was administered," he said.
Amazon shares rose 2 percent in morning trade.
The company also announced it would discount One Medical
membership to $144 from $199 for the first year to new customers, irrespective
of whether they are subscribers to Amazon's Prime loyalty program. Membership
covers access to One Medical's virtual care services, referral and insurance navigation,
Amazon said.
The FTC official on Tuesday said the agency would watch for
any possible harm to competition caused by the tie-up, along with how consumer
data is used. Antitrust agencies can file complaints to undo a merger after it
is complete.
The FTC is also probing Amazon's plan to buy iRobot, maker
of the autonomous Roomba vacuum, for $1.7 billion.
Amazon said it had no layoff plans for One Medical after
closing the deal. Amir Dan Rubin, One Medical's chief executive, will remain
with the company and report to Neil Lindsay, senior vice president of Amazon
Health Services, the retailer said.
One Medical had 836,000 members at last year's end and 2022
net revenue of $1 billion. It had a physical presence in 27 markets across the
United States, from San Diego to Cape Cod, it said in its annual report. © Reuters
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