Amazon One Medical, the provider of physician-staffed clinics and virtual care, is partnering … [+]
More than a year after Amazon bought One Medical, the provider of physician-staffed clinics and virtual care collaborates with the prestigious Cleveland Clinic and its specialized network of medical providers.
The first Amazon One Medical primary care office affiliated with the Cleveland Clinic will open next year, “with same- and next-day appointment availability, on-site laboratory services and expanded virtual care support for members,” the two partners said in an announcement on Monday at HLTH 2024 in Las Vegas. The idea is to provide “seamlessly coordinated care” through Amazon One Medical’s offices and Cleveland Clinic’s network of specialists, hospitals and healthcare facilities.
Amazon One Medical, which has nearly 240 primary care offices in more than 20 U.S. markets, is expanding in existing markets and adding new locations such as Northeast Ohio, where the Cleveland Clinic network is strong. Amazon One Medical said there are plans to expand to New Jersey later this year and Milwaukee next year.
The expansion comes more than a year after Amazon completed its $3.9 billion acquisition of One Medical with a promise to expand more healthcare services in the markets it serves through its One Medical, One Medical Seniors and offices for specific employer populations.
“This collaboration demonstrates a shared commitment from both organizations to meet the needs of our patients and to improve the care we provide to our communities,” said the president and CEO of Cleveland Clinic. CEO, Dr. Tom Mihaljevic, who is speaking at this week’s HLTH meeting. “Amazon One Medical will complement our current primary care offering, providing patients with access to essential healthcare services.”
Amazon’s commitment to One Medical’s expansion comes at a time when rival companies are seeing mixed results in the healthcare retail industry.
While CVS Health has long operated more than 1,000 MinuteClinics staffed by nurses and is in the midst of a national expansion of its Oak Street Health clinics for seniors, Walgreens has lost billions of dollars from its troubled investment in physician-staffed clinic operator VillageMD. Meanwhile, CenterWell, the health care division of health insurer Humana, announced plans to lease and open senior-focused primary care centers at 23 former Walmart Health clinic locations in Florida, Georgia, Missouri and Texas, after Walmart decided to exit the retail health clinic business.
It is unclear how well One Medical is doing financially. Amazon is not disclosing whether One Medical is currently making a profit, nor is the company disclosing revenues or the number of patient visits to its facilities.
Before Amazon bought One Medical, the startup lost nearly $400 million in 2022, its last full year as a publicly traded startup. This is evident from a filing with the US Securities & Exchange Commission. Amazon completed its acquisition of One Medical in February last year.
But Amazon is moving forward. In an interview earlier year, Amazon One Medical executives said they are seeing consumer demand for its primary care model in metropolitan statistical areas (MSAs) as “40% of Americans do not have a primary care provider.”
Amazon One Medical executives say their model is performing well and that they are not tying doctors to productivity metrics based on the number of patients treated as some rivals have done. Instead, the doctors are employed. One Medical’s office and clinic expansion will depend on the needs of each market, especially given the challenges of recruiting physicians amid a national physician shortage, executives say.
In its statement announcing the partnership with Cleveland Clinic, Amazon One Medical said its clinics and facilities are “designed to enhance the patient experience at every touchpoint, including thoughtfully designed offices, convenient appointments and ample time between patients and their caregivers.”
“We look forward to working with Cleveland Clinic to deliver a high-quality patient experience and seamless continuation of care in all settings to deliver the highest level of health, care and value,” said Amazon One Medical CEO Trent Green in Monday’s announcement. “Partnering with Cleveland Clinic furthers our mission to improve the healthcare experience by bringing our people-centered and technology-powered model to individuals and employers in the Cleveland area.”