Amazon will pay nearly $4 billion for One Medical which is 7% owned by The Carlyle Group. In 2018 Carlyle made a significant minority investment in One Medical for up to $350 million and held nearly 27% of the company when it went public. One Medical priced at the low end of the range in January 2020 at $14 per share.
Cheddar News reported:
Several rounds of investment from the likes Google Ventures and The Carlyle Group lifted One Medical's value to nearly $2 billion over the last two years, but an ambitious and expensive growth plan pushed the company to go public.
Last summer One Medical bought Iora Healthcare which does Medicare Direct Contracting. The Biden administration renamed Medicare Direct Contracting, calling it ACO Reach. Essentially, patients get enrolled without their choosing to be under ACO Reach. Their doctor decides for them. One Medical and the participating physician make more money as the patient uses less healthcare. Sometimes that comes from providers denying healthcare tests and/or procedures. Yikes.
Jeff Bezos does not seem to mind his employees having to piss in a bottle rather than take time away from fulfilling orders. It's efficiency and helps make products more accessible and affordable. That's the same language One Medical's CEO used to describe the deal.
“There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers and payers. We look forward to innovating and expanding access to quality healthcare services, together.”
One Medical's CEO may make enough money from his holdings to take a trip into space where Jeff Bezos can have him also piss in a bottle. Will innovation enable it to run an instant urinalysis?
Politically connected private equity underwriters making huge returns from flipping healthcare companies is not bringing healthcare costs down. I'm not sure denying needed care is enjoyable from a patient perspective.
Update 10-25-23: A Bono, Bezos, Gates company intended to revolutionize trucking may be going under. Convoy will "shut down core business operations immediately while some staff
would be retained to wind down operations and for potential future
strategic options." What does this portend for patients counting on OneMedical should it encounter financial troubles?
