Amazon's On-Again, Off-Again Big Bets On Health Care Sector

In its most recent entry into the health care industry, Amazon.com, Inc. AMZN has agreed to purchase 1Life Healthcare Inc. ONEM, which runs a primary-care practice under the name One Medical, for $3.9 billion, including debt.

What Happened: Amazon announced on Thursday that it would acquire the San Francisco-based health care startup for $18 per share in cash.

According to its website, One Medical is a primary care practice that relies on membership and has locations in 12 U.S. areas. It offers both in-person health care services and access to virtual care. One Medical collaborates with more than 8,000 businesses to provide health benefits to their employees.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services. “We see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”

Shares of 1Life jumped more than 69% to $17.25 on Thursday, nearly the buyout level.

Why It Matters: Amazon has been outlining its goals in the healthcare industry for several years. It debuted its Amazon Care initiative in 2019 to provide virtual care services to its employees and it purchased online pharmaceutical businesses, including the $753 million purchase of PillPack in 2018.

One Medical could eventually be integrated into Amazon Care, the company's on-demand healthcare service.

Amazon joined forces with JPMorgan Chase & Co. JPM, and Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) in 2018 to address the high and rising costs of employee health care. The joint venture, known as Haven, failed to take off and was disbanded after three years.