State Agency Approves Amazon One Healthcare Agreement

Amazon One Healthcare Agreement: The Oregon Health Authority, a major regulator, has given its blessing to Amazon’s planned acquisition of One Medical, a primary care provider, citing a lack of “concerns about price hikes.”

State Agency Approves Amazon One Healthcare Agreement

In a review released on Tuesday, the Oregon Health Authority, which had been under pressure from consumer groups to block the transaction on the grounds that it would reduce care quality and drive up costs, said that it had no concerns about price increases because “the transaction will not meaningfully change Amazon and One Medical’s market share for primary care services in Oregon.”

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In Oregon, One Medical “works with Providence Health & Services to support clinical treatment and administrative services” at five of its primary care clinics, according to papers obtained as part of a regulatory investigation by the state.

According to the executive summary published by the Oregon Health Authority, “the transaction is unlikely to dramatically limit access to affordable health care in Oregon.” Patients in Oregon cities where One Medical has offices have numerous alternative choices for receiving medical care. As a result of this deal, OHA does not expect prices to rise.

Furthermore, the Oregon Health Authority stated that Amazon’s “sophisticated supply chain and buying power” will allow the company to “create efficiencies and savings for One Medical.”

There is unprecedented competition for primary care doctor practices as Walgreens opens hundreds of physician-staffed clinics with partner VillageMD and Walmart launches its doctor-staffed clinics under the Walmart Health brand in several new markets, both of which coincide with Amazon’s proposed $3.9 billion acquisition of One Medical. Also, CVS Health is expanding its primary care models to include more physicians, despite having traditionally relied on nurse practitioners to run its more than 1,100 in-store clinics.

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Federal antitrust officials are currently evaluating Amazon’s proposed acquisition of One Medical. Each of One Medical and Amazon “received a request for further information and documentary materials from the FTC in connection with the FTC’s investigation of the Merger,” the companies said in a September filing with the Securities and Exchange Commission.

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