Amazon buys US healthcare service provider as it cements transfer into health care | Amazon

Amazon will purchase the main treatment organization One Health-related in a offer valued about at $3.9bn, marking another enlargement for the retailer into health care products and services.

The Seattle-based mostly e-commerce big explained in a assertion Thursday it is getting Just one Healthcare for $18 a share in an all-income transaction. It’s one of Amazon’s most significant acquisitions, following its $13.7bn offer to invest in Total Foods in 2017 and its $8.5bn invest in of Hollywood studio MGM, which shut before this yr.

One Healthcare, whose mum or dad company is the San Francisco based 1Existence Health care, Inc, is a membership-dependent company that offers virtual treatment as effectively as in-particular person visits. It also functions with a lot more than 8,000 companies to present its well being positive aspects to staff members.

As of March, 1 Health care had about 767,000 customers and 188 professional medical places of work in 25 markets, in accordance to its initially-quarter earnings report, which also showed the corporation experienced incurred a net loss of $90.9m just after pulling in $254.1m in revenue. The total offer price introduced Thursday involves A single Medical’s personal debt.

Neil Lindsay, the senior vice president of Amazon Overall health Products and services, explained in a assertion the acquisition is geared towards reinventing the health care “experience“ for matters like booking an appointment and having excursions to the pharmacy.

“We appreciate inventing to make what really should be quick less complicated and we want to be a person of the organizations that allows considerably increase the health care practical experience more than the future many yrs,” Lindsay mentioned.

Overall, buyer demand for telemedicine and virtual overall health treatment care visits exploded through the Covid-19 pandemic. Healthcare bill payers like employers and insurers are also becoming more centered on bettering accessibility to client treatment and earning confident their patients remain tuned in to their wellness, see their medical practitioners on a regular basis and just take their prescriptions.

Healthcare fees have risen more quickly than wages and inflation for several years and depict a big price to businesses that offer protection. Businesses and insurers imagine that by connecting persons to common care, they can reduce pricey healthcare facility stays from taking place or keep serious conditions like diabetes from main to even bigger troubles.

For Amazon, the acquisition deepens its foray into healthcare providers, the newest market the firm

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Oak Street Health buys virtual specialty care company RubiconMD for up to $190M

Oak Street Health, a chain of primary care clinics geared toward the Medicare population, has acquired virtual specialty care provider RubiconMD for up to $190 million.

The deal includes a base $130 million in cash with up to $60 million added subject to performance, paid either in cash or a cash and stock combination, according to an investor presentation.

RubiconMD provides a network of specialists providing care in areas including cardiology, nephrology and pulmonology. 

“Carlos Reines and I founded RubiconMD to democratize medical expertise so that primary care providers can offer all patients the care they deserve, and we are thrilled for this next step with Oak Street Health,” Gil Addo, cofounder and CEO of RubiconMD, said in a statement. “We share similar cultures and values, as well as a commitment to delivering high-quality patient care and lowering costs, and we look forward to continuing to innovate together.”

WHY IT MATTERS

Some patients face difficulties accessing specialty care, particularly those who are low-income or live in rural areasOak Street Health is positioning its purchase as a way to deliver specialty care more easily, with a better experience for patients, improved care coordination and lower costs.

“Oak Street Health is on a mission to rebuild healthcare as it should be, which we are doing by focusing on preventive care and driving more resources into the primary care setting,” Mike Pykosz, CEO of Oak Street Health, said in a statement.

“Like traditional primary care, specialty care is broken for older adults, but together with RubiconMD, we can rebuild it into a model that meets patient needs. Integrating and virtualizing specialty care into Oak Street Health’s innovative model enables us to improve access, experience and coordination for patients while substantially lowering costs. RubiconMD’s technology platform and national footprint [allow] us to scale the model across our current and future markets to further our mission.”

THE LARGER TREND

In March 2020, RubiconMD scooped up $18 million in Series C funding, building on a $13.8 Series B from 2018. 

Primary care is a popular space for healthcare innovation. Other players include ChenMed, another primary care provider focused on seniors, and One Medical, which completed its purchase of Medicare-focused Iora Health in September and launched a digital chronic care product earlier this week. 

Virtual or hybrid primary care options abound too. Virtual care giant Teladoc Health’s Primary360 offering recently became available

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Health care trading network buys case support platform

Global Healthcare Exchange Inc. bought Explorer Surgical Corp. on undisclosed terms. GHX is a Louisville-based software-as-a-service company. Explorer Surgical operates a digital and remote case support platform and is based in Chicago.

GHX’s main offering is GHX Exchange, which connects health care providers and suppliers of goods and services via electronic platform, a back-office supply-chain and purchasing system and incorporating data and analytics globally, according to its website, news reports and a press release on the acquisition.

Explorer Surgical’s work also includes connecting suppliers with health care providers, including remote mentoring and performance-tracking tools. One offering lets hospitals “guide, track and analyze activity in the operating room, and improve communication and performance,” startup journal Chicago Inno said.

“Patient care decisions must be grounded in data, product expertise and procedural best practices because lives depend on it,” GHX president and CEO Bruce Johnson said in a press release announcing the deal.

“Healthcare is rife with inefficiency and must standardize the operational and clinical best practices and products that yield the best possible patient outcomes,” Explorer Surgical co-founder and CEO Jennifer Fried said.

Explorer Surgical had raised $11 million in funding through April, led by Aphelion Capital in California and Sofia Fund, a Minnesota group investing in technology companies run by women, Chicago Inno said.

The acquisition of Explorer Surgical follows GHX’s purchase of Lumere, founded as Procured Health in 2014 and focused on cutting health care costs with data and analytics, in January 2020. In 2018 it bought Medical Columbus AG, a cloud-based health care supply-chain manager.

GHX was founded in 2000 by industry suppliers including Medtronic Inc., Abbott Laboratories, GE Healthcare, Johnson & Johnson and Baxter International. Other owners joined through February 2014 a healthcare journal said, reporting its sale to private equity firm Thoma Bravo LLC.

The private equity firm at the time generally invested up to $300 million in its acquisitions. Additional acquisitions followed its buyout.

In May 2017, Singapore-based Temasek Holdings Ltd. bought most of Thoma Bravo’s stake. Thoma Bravo exited its investment fully in June 2021 when Warburg Pincus made a minority investment in GHX. PE Hub said the Pincus investment was $500 million.

GHX works with 5,600 health care providers and 950 suppliers in the U.S. and Europe, its website said. In the Warburg investment press release, GHX said its platform serves providers with 80% of licensed hospital beds in the U.S. and that 85%

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