The Oregon Health Authority (OHA) has approved Amazon's plans to acquire One Medical, a virtual and in-person primary care organization, for $3.9 billion, clearing a hurdle to cementing the deal.
The authority's regulatory review found that Amazon purchasing One Medical likely wouldn't "substantially" lower access to care in the state, as per news reports. However, health equity concerns could arise if One Medical steers commercially insured patients with higher pay rates away from clinics that also serve the Medicare and Medicaid populations.
The agency has approved the transaction provided that Amazon and One Medical report information about their services, their patients, care quality, and governance or organizational changes. These reports must be submitted every six months for five years after the merger is completed.
Amazon and One Medical are still waiting for federal approval to close the deal.
The deal could raise costs for all medical groups and further alter the dynamics of physician recruiting and acquisitions, according to a Forbes report.
Independent physicians should be prepared for "an entirely new dynamic" when it comes to prospective buyers, the report said. The new market will include unconventional buyers, such as larger retail companies. There will also be a push toward consolidation as more buyers look to buy physician practices.
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