Dive Brief:
- Amazon’s One Medical plans to enter New Jersey this year, standing up new clinics in partnership with nonprofit health system Hackensack Meridian Health.
- One Medical will manage and staff the clinics, which will join Hackensack’s clinically integrated network. Their first clinic will open by the end of 2024, with specific locations to be determined, according to a release.
- The partnership announced Tuesday adds another hospital operator to One Medical’s bench of health system affiliates, which includes Washington-based Providence, North Carolina’s Advocate Health and Boston-based Mass General Brigham.
Dive Insight:
One Medical has inked affiliations with over a dozen health systems to date, with deals to stand up new clinics that refer One Medical patients to those systems for more specialized care.
Such partnerships may be a valuable referral stream for hospital operators, serving as a source of volume at a time when more patients are seeking care outside of the pricey inpatient setting.
They can also be valuable for One Medical. While the provider doesn’t disclose the financial terms of specific deals, revenue from the partnerships totaled $257 million in 2022 — accounting for one-fourth of the provider’s total revenue that year, according to financial documents.
One Medical provides in-person and virtual care for an annual membership fee. The primary care chain serves mostly commercially insured individuals through deals with thousands of employers, though it also operates a lucrative senior care business.
One Medical operates more than 200 clinics in over 20 markets in the U.S.
Recently, the provider announced plans to open a new clinic in San Francisco — one of the chain’s largest markets, where it partners with UCSF Health — and to open another clinic in Washington, D.C. in partnership with Maryland-based MedStar Health. One Medical also opened its first Connecticut location this year, in partnership with Hartford HealthCare.
Amazon acquired One Medical for $3.9 billion in a deal that closed earlier this year. Since then, the e-commerce giant has focused on integrating One Medical with other business lines, including discounting One Medical memberships for its Prime users earlier this month.
One Medical is Amazon’s second go at being a primary care provider — the company shut down its hybrid care offering for employers, called Amazon Care, at the end of 2022, after flagging demand. Another high-profile effort to lower healthcare costs, called Haven, flamed out in 2021.
