Amazon is buying clinic operator One Medical in a $4 billion bet on healthcare

• Amazon is buying healthcare provider One Medical for $3.9 billion.
• It's one of Amazon's biggest acquisitions ever.

Amazon is taking a leap into healthcare by acquiring primary-care provider One Medical, the companies announced on Thursday.

The e-commerce giant will buy the health-clinic operator for $18 per share in a deal that values One Medical at $3.9 billion. It ranks among Amazon's biggest acquisitions, beat only by its purchase of MGM Studios for $8.5 billion and its purchase of Whole Foods for $13.7 billion.

One Medical promises to take some of the drudgery out of getting seen by a doctor by offering a range of medical services to customers who pay $199 per year. It offers 24/7, on-demand virtual care, and members can use the company's app to make same-day or next-day appointments for in-person visits. It also cares for some seniors in the US Medicare program, after acquiring eldercare pioneer Iora Health.

As of the end of March, One Medical operated 188 locations across the US and served about 767,000 members, according to a quarterly filing.

"We think health care is high on the list of experiences that need reinvention," said Neil Lindsay, senior vice president of Amazon Health Services, in a statement. "We see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days."

It isn't Amazon's first foray into healthcare. The company acquired mail-order pharmacy PillPack in 2018 for roughly $750 million. It is building out its own medical operation called Amazon Care, which offers virtual consultations and at-home visits from doctors.

Bloomberg News reported in early July that CVS Health, which runs a pharmacy chain and offers health insurance, had expressed interest in acquiring One Medical. CVS decided against a deal, but One Medical was seeking other offers, Bloomberg reported.