OneMedical
Website: https://www.onemedical.com/
Update: On July 21, 2022, Amazon and One Medical entered into an agreement for Amazon to acquire One Medical for $3.9 billion. This includes One Medical’s debt, which includes $2.1 billion that One Medical paid for Iora Health in June 2021. Iora Health had more than $350 million in funding at that time.
One Medical has expanded into 16 markets with 736,000 members at the end of 2021. Amazon announced in August 2022 that it was shutting down their pilot program for employees Amazon Care.
- “Amazon and One Medical Sign an Agreement for Amazon to Acquire One Medical,” Press Release, July 21, 2022 (CLICK HERE).
- “Amazon already knows a lot about me, but One Medical takes it to a whole new level,” Ari Levy. CNBC, July 23, 2022 (CLICK HERE).
- “One Medical picks up Medicare-focused provider Iora Health in $2.1B M&A,” Laura Lovett. MobiHealthNews, June 07, 2021 (CLICK HERE).
- “Amazon is shutting down its telehealth service, Amazon Care,” Annie Palmer. CNBC, August 24, 2022 (CLICK HERE)
Locations: As of 10/18/2019, One Medical has more than 6 locations in Boston (2), Chicago (3), Los Angeles (4), New York (9), Phoenix (4), San Diego (2), Seattle (3), the San Francisco area (29) and Washington, D.C. (7). Additional locations are “coming soon” to Atlanta, Orange County and Portland.
Scope of Practice: One Medical is a hybrid traditional office that has leveraged technology. One Medical provides an EHR “designed for primary care, not billing” as part of a technology platform that includes an app for scheduling appointments, renewing prescriptions and messaging a provider. One Medical promotes on-demand connection to care with video and messaging. One Medical provides patient advocacy services to guide patients through health insurance questions.
Practice Focus: One Medical embodies a wellness, symptom and disease focus. One Medical addresses wellness prevention, everyday care, chronic conditions, family, mental health and group visits. All locations are contracted with insurance carriers in their area. One Medical provides in-office lab testing.
Public Information: One Medical is backed by Google’s parent company Alphabet. Started in San Francisco in 2006, One Medical received additional funding in 2007 and expanded to New York in 2009. As of June 7, 2019, One Medical had raised $532.1 million from investors (#2). One Medical has hired banks for an IPO and is expected to release its prospectus in the first quarter 2020.
Pricing: Members pay an annual fee of $199. Some patients say this is to utilize One Medical’s technology. One Medical participates with some health insurance plans.
Outlook: Interest around One Medical’s prospectus is focused on whether its profit margins will be slim in line with health care companies or significantly larger in line with tech companies. It is difficult to understand how One Medical’s performance would be consistent with tech companies, as its primary service is health care. While technology has been a competitive advantage, this advantage is been diminished by increasing adoption of technology in health care. More and more practices offer practice portals to accomplish scheduling, prescription refills and messaging.
Other than technology, One Medical’s distinction is its $199 annual membership fee. While this fee may raise several hundred thousand annual for each mature provider, it is uncertain if this amount is significant enough to make primary care profitable, (and it would appear that this amount would be insufficient to generate technology margins). One Medical may be benefiting from cost-savings experienced by employers who participate in their plan, but this is unclear at this time. Employer participation may also result in a lower per-patient annual membership fee.
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