Hi there,

Amazon wants health care that feels simple. One Medical needed reach, capital, and product scale. Together they could connect clinics, telehealth, and pharmacy into one path. Amazon chose to buy the front door for primary care.

Executive Summary

Amazon closed its acquisition of One Medical for about $3.9 billion in February 2023. The deal added staffed clinics, 24/7 virtual care, and employer contracts to Amazon’s health portfolio. It created a place where Prime members could add real primary care to a familiar subscription.

After closing, Amazon folded more services into the brand. Amazon Clinic became One Medical’s pay-per-visit telehealth. Prime members got a discounted One Medical membership that is priced to encourage household adoption. The bet is that health care becomes a sticky Prime benefit that also stands alone for employers and consumers.

Background

Amazon has tested many health paths. Some shut down. Others kept going. The company now focuses on three pillars that work together: One Medical for care, Amazon Pharmacy for medications, and Prime as the consumer relationship. The One Medical purchase put staffed clinics and always-on virtual care beside those pillars.

One Medical already ran a membership model with same and next-day visits and 24/7 virtual care. Amazon kept that core and layered in pricing and distribution through Prime. It also kept a pay-per-visit channel for common conditions so people can try care without a membership. This suite gives Amazon an on-ramp at many price points.

The Business Challenge

1. Make access simple

Patients struggle to book fast primary care. Waits are long and hours are short. Amazon needed a path that answers “how do I get care today” in a few taps.

2. Build a consumer habit

People open Prime every week. Health care is episodic and easy to delay. The challenge was to tie routine care to a subscription people already value.

3. Connect care to medications

Primary care decisions and pharmacy fulfillment often live apart. Delays break treatment plans. Amazon wanted seamless handoff from visit to delivery.

4. Compete with employer and retail giants

Payers, retailers, and big health systems now offer clinics and virtual care. Each has a distribution advantage. Amazon needed a clear reason to choose One Medical instead.

5. Prove the model at U.S. cost levels

Primary care economics are tight. New markets, training, and buildouts raise cost. The business had to show that utilization, retention, and pharmacy attach can carry the investment.

The strategic moves

1. Make One Medical a Prime add-on

Amazon priced One Medical for Prime at $9 per month or $99 per year for the member, with discounted add-on slots for family. The price lowers the first step. It also turns family sign-ups into a multiplier.

2. Keep a pay-per-visit option

Amazon rebranded Amazon Clinic into One Medical’s pay-per-visit telehealth. Messaging visits start at $29 and video visits at $49. This gives a try-before-membership path for common conditions.

3. Expand clinics and markets

One Medical added offices and announced new cities after the acquisition. More local access supports employers and consumers. Physical presence also improves trust.

4. Integrate with Amazon Pharmacy

Amazon highlighted faster fulfillment and broader delivery coverage. The goal is a closed loop from diagnosis to medication at home. Convenience and price transparency support retention.

5. Partner with leading health systems

One Medical pursued select partnerships to extend reach and credibility. These deals create local depth while keeping a national brand. They also help navigate referrals and specialty care.

Execution

1. Brand and product consolidation

Amazon brought telehealth under the One Medical brand and simplified entry points on Amazon.com and the app. Fewer clicks and clear prices reduce drop-off. A single name clarifies what customers are buying.

2. Prime pricing and family enrollment

Prime members see a discounted annual or monthly rate and can add up to five family members at a lower price. Household enrollment turns one decision into many. The unit economics improve with higher multi-member uptake.

3. Network growth and new services

The company opened new clinics and introduced programs like pediatric pay-per-visit and in-office pharmacy kiosks in select markets. These services widen the entry points for families. They also raise cross-sell with pharmacy.

4. Employer and plan channel

One Medical kept selling into employers and health plans. Workplace clinics and care navigation reinforce membership value. The B2B channel smooths demand beyond consumer cycles.

5. Governance and leadership changes

Leadership shifted as Amazon integrated the business. Turnover can slow plans but also resets accountability. Amazon kept execution focused on service levels during the transition.

Results and Impact

1. A clearer consumer path to care

Customers can choose a single visit or a membership. The steps from symptom to provider are shorter. The brand reduces confusion by placing options in one flow.

2. Prime becomes more than shipping

Health care turns Prime into a life service, not only a delivery perk. The add-on pricing is designed to grow household adoption. Retention should improve as health touches daily life.

3. Clinic and market expansion

New sites give local access in more cities. The footprint supports both consumer and employer growth. Physical presence strengthens trust at the moment of need.

4. Cost and schedule lessons

Same-day and fast delivery make treatment plans easier to follow. Integrated pricing and reminders can reduce drop-off after the visit. Pharmacy attach can help unit economics.

5. Operational and compliance lessons

Growth brings privacy, safety, and process risks. Incidents drove firings and retraining and kept scrutiny high. The organization is building stronger privacy controls as it scales.

Lessons for Business Leaders

1. Meet customers where they already subscribe

Attach a new service to a habit they use often. Prime gives distribution and trust for health. Price the first step so a trial feels easy.

2. Offer multiple on-ramps

Some people want a one-off visit. Others want ongoing care. Keep pay-per-visit and membership in one flow so customers can upgrade when ready.

3. Close the loop from visit to delivery

A care plan fails if medication is hard to get. Connect primary care and pharmacy in one experience. Track completion and nudge when steps are missed.

4. Blend national scale with local depth

National brands need local partners, clinics, and talent. Expansion is more than a map of pins. It is reliability near home.

5. Treat compliance as a product feature

Privacy and safety are not afterthoughts. Build monitoring, training, and clear escalation into daily work. Trust will decide who wins long term.