Amazon understands that the digital must eventually be supported by the physical. They did it with goods and delivery, now they are doing it with healthcare. Today we explore where they are going with the acquisition of One Medical. Hope you enjoy.
Today in health, it, Amazon buys one medical for roughly 3.9. Billion dollars. What's next? My name's bill Russell. I'm a former CIO for a 16 hospital system. And creator of this week health, a set of channels, dedicated to keeping health, it staff, current and engaged. We want to thank our show sponsors who are investing in developing the next generation of health leaders.
Gordian dynamics, Quill health tau site nuance. Canon medical and current health. Check them out at this week. health.com/today.
All right. We knew it was coming. At least I knew it was coming some aspect of this Amazon to buy a primary healthcare provider, one medical for roughly 3.9 billion. Is the title on CNBC, CNBC. , is great. They're the key points right there in the beginning.medical, which went public in:, one medical went public in:
, his grown to oversee 188 medical offices in 25 markets. And counts 767,000 members. According to its latest quarterly results. One medical reported, a net loss of $90 million on revenue of 254 million. In the first quarter. , there's an immense opportunity to make healthcare experiences more accessible, affordable, even enjoyable for patients, providers, and payers.
One, a medical CEO. Amir Dan Rubin. Said in a statement. Once the deal closes, Ruben will continue to run one medical shares of one life healthcare. One Medical's parent opened roughly 66% higher Thursday trading just. Below the purchase price, so forth and so on. , and they go on to talk about all the things that Amazon has time. Do you have Amazon health? You have PillPack.
, you have, , I'm sorry, Amazon care. Not Amazon health. , PillPack, you have the online pharmacy you have, , at home medical diagnostics and so forth. So that is what the article. Has to cover. And I'm going to talk a little bit about this. And give you a little bit of my, so what on it? So.what's happening now. Back in:
Right. And so one of the things that Amazon is really good at is Amazon. It doesn't see itself as only a digital company when they have to, they are able to bridge the gap between digital and physical. Right. So they'd look at the delivery of goods around the world and they recognize that, you know what, we're not going to be able to do this unless we take this all in house and they build out a phenomenal logistics arm that can deliver your goods the same day next day.
You know, a couple of days, depending on if you're a prime. Customer, if you're not a prime customer. So they're, they're not afraid to head into the physical world when they see it as critical to the consumer experience, critical to. , delivering on the promise to the consumer. And this is another case where they were sort of stuck.
And I think the, the addition of Aaron Martin was really smart on their part. For a couple of reasons. One is they had a business model where they would stand things up and they would all compete with each other and that's all well and good. Except when you get into healthcare, you can't have the various arms not talking and working with one another. You have to build a cohesive strategy around healthcare because the consumer.
E the consumer is looking for just that they're looking for a cohesive strategy, not only , the Amazon care where you have , the app that is delivering a great experience and really a concierge level service. Unlike we're seeing in healthcare. And the reason I call it concierge is not that it's concierge medicine, but because it feels that way when you go through Amazon care.
You essentially. you start with telehealth, you can have the, you could have an escalate to a, a physician coming into your office. You can have the physician go to your home and now they essentially have added. With my medical, the ability to go to some clinics, you have the ability to deliver the medications wherever you happen to be in the world. They can be delivered to your office. Same day. They can be delivered to your home. They can be delivered to your hotel room for that matter.
And , so you can't have these entities competing. You have to look at it as a cohesive delivery of services. And so I think Aaron Martin coming with his experience at Providence and really understanding the space having spent the last couple of years here. , , is going to be able to influence their thinking. I'm not even sure what the, the, , organization structure is at Amazon, but I think his influence in that organization,
We'll lead to a much better solution all in all for healthcare. So the one medical is not surprising because now you're building out the logistics you needed. So you had Amazon care and they were doing it for their employees. They expanded that. And then they were doing it for some employers that Peloton to the world and others.
And they were looking at it saying, all right, how are we going to do this? And they had to make that move into the physical. And they were trying to build it out and they had some convoluted way that. We're trying to build it out. The one medical acquisition. Is a phenomenal way for them to build it out. Plus you bring together some capabilities.that's what you have back in:
I also said that, , they have more data on most more data than anyone on people. That's potentially not true if I thought about it, , Google may have more information if I thought about it. , that the government definitely has more information.
And I'm trying to think if anybody else would have more information. I'm not really on Facebook, but people who are on Facebook are probably giving away a lot of information. People are on social media. Give away a lot of information. But Amazon has the ability to really mind a significant amount of information.
They know what I eat, they know. , where I shop, they know the type of books I read. , they know an awful lot about me. Right. And so that consumer centric, what I was saying back then is that they should get right in the middle. There, they shouldn't become an insurance player. They should become an acute care player, but they should be right in the middle. They should be the person that I go to as either an employer or as an individual.
And they start to coordinate my activities within healthcare because they truly care about my health. Where healthcare is sick care. Amazon care could be WellCare. Right. So they could coordinate a whole bunch of things. Their digital foundation will be able to, , really take that data and make an actionable, they could put it in front of the physicians when it's necessary. They could put it back in front of me as the consumer when it's necessary.
They can guide my steps in terms of my health journey. , they can start to bring in, , reception points for , the data that's going to be there through the internet of medical things. And pull all that information in. And, you know, potentially, could you SERP, apple as the primary care record we had Apple's strategy. Finally get released.
Apple's health care strategy. Finally get it released. And I was going to do that today, but this story sort of Trump that, , I go into some scenarios of how that, , in the article on health system, CIO of how Amazon care might play out, if they decide to step into that space. And quite frankly, I was , just reading them and they are all still in play with this, with this move.at what was happening back in:
A new CEO. Over at, , Amazon new person heading up Amazon web services, all that stuff sort of comes together to create, , an interesting opportunity. If you haven't had a chance, go ahead and check it out. , health system, CIO, how Amazon can have a prime impact on healthcare. I think this is a big move.
I still contend that the national players in healthcare. Our Amazon. Walmart. CVS. Walgreens. , potentially some others, but those are the four primary ones. That I'm looking at, and they're going to step into , this primary care space, and they're gonna step into this, patient navigation, right? Patient navigation, not of healthcare, but of health. And you will continue to see these interesting acquisitions and pulling these things together. As they try to create a new model for delivering care.
All right. That's all for today. I'm going to be out the next couple of weeks, but I'm still going to do some shows. I've prerecorded some stuff. You're going to hear that. And primarily, we're going to take a look at some of the things that are being said on the town hall show. And when I get back, I'll pick up on the news and we will start talking about some more of that.
If you know someone that might benefit from our channel, please forward them a note. They can scrubbing our website this week out.com or wherever you listen to podcasts, apple, Google, overcast, Spotify, Stitcher. You get the picture. We are everywhere. We want to thank our channel sponsors who are investing in our mission to develop the next generation of health leaders.
Courtney and dynamics, Quill health Taos site nuance, Canon medical, and 📍 current health. Check them out at this week. health.com/today. Thanks for listening. That's all for now.