Amazon closed its acquisition of healthcare provider One Medical and its parent in a $3.9 billion deal.
The landmark deal will turn the e-commerce giant into a provider of primary medical care with access to more than 200 brick-and-mortar doctors’ offices, along with roughly 815,000 One Medical members.
The One Medical deal will also allow Amazon to expand its telehealth services and acquire relationships with hospital systems.
The deal came just hours after the Federal Trade Commission said it would not challenge the purchase.
However, regulators were still investigating potential competitive and consumer harms of the transaction.
One Medical is a primary health care provider that offers 24/7 access to on-demand virtual health services as well as guarantees same- or next-day appointments in person.
It has more than 125 offices across the country.
In July, Amazon announced plans to buy One Medical. This week, the FTC said it would not challenge the deal.
But while Amazon can consummate the deal without the immediate threat of an FTC antitrust suit, the agency is still investigating the acquisition and can still challenge the deal after the fact.
The merger marks a giant leap into the healthcare industry for Amazon. Amazon has spent years dipping its toes into the healthcare industry. This new deal opens the potential for the online retailer to follow patients every step of the way.
What does it mean for consumers?
People will be able to get their health care, groceries, medication, and just about everything else all under one company.
Talk about a ‘one-stop shop.’
Amazon said it hopes the merger can make health care more “convenient for everyone” amid challenges in the industry.
However, not everyone is rushing to sign up.
The FTC says they are worried that Amazon’s access to “sensitive consumer health information” could be misused for things like targeted advertising.
The agency warned that although the deal closed, they will continue to investigate the acquisition to make sure no antitrust laws are broken.
It remains possible that Amazon’s takeover could face challenges from the government in the future.
The move already has investors cashing in. Amazon’s stock went up 2 percent during morning trading hours after the deal went through.