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Morning Briefing

Summaries of health policy coverage from major news organizations

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Tuesday, Sep 6 2022

Full Issue

FTC Probing Amazon's One Medical Purchase

The deal is worth nearly $4 billion, and has been reported on as a big play by the retail giant to expand its health care operations. The Federal Trade Commission's investigation may delay the deal. Insider reports that Amazon may also be trying to access Japan's prescription drug market.

The Federal Trade Commission is investigating Amazon’s $3.9 billion acquisition of the primary health organization One Medical, a move that could delay the completion of the deal. Both One Medical and Amazon received a request for additional information Friday in connection with an FTC review of the merger, according to a filing made with securities regulators by One Medical’s parent, San Francisco-based 1Life Healthcare Inc. (9/2)

One Medical serves as a sort of Netflix-for-healthcare subscription service that gives customers access to in-person and virtual appointments at 125 clinics across the US for $199 per year. Meanwhile, iRobot’s known for its line of Roomba robot vacuums that have only grown more adept at understanding users’ homes and their habits with the rollout of iRobot OS. The acquisitions of both companies align with Amazon’s long-term goals of carving out its own lane in the healthcare industry, as well as collecting more data about its customers, something Amazon could do with Roomba’s home-mapping capabilities. (Roth, 9/5)

In other news about Amazon's health care ventures —

Late last month, staffers at Amazon Care — the company’s in-person and virtual primary care service — were called into a meeting and given bad news: Amazon was shutting it down. Some employees were let go immediately. Others walked out. Everyone was promised paychecks through the end of December. The news caught Amazon employees by surprise — including those who used the service as patients. The company’s human resources staff had been promoting Amazon Care as a health benefit the same week it shut down, an Amazon employee told The Washington Post. (O'Donovan, 9/4)

Buzzy, venture-backed startups and big tech companies that have promised to disrupt health care are indeed doing so — including by shuttering services that early adopter patients may have come to rely on. (Ravindranath, 9/6)

Amazon is considering a foray into Japan's prescription drug sales business with plans to launch a service in the country next year, according to a report from Nikkei on Monday that cited people involved with the project. The plans would be a sign that the US-based online retail giant is seeking to further expand its healthcare capabilities after it announced its planned acquisition of primary care company One Medical for $3.9 billion. (Ungarino, 9/5)

And more about the high cost of health care —

As healthcare costs and insurance deductibles rise, more hospitals in Chicago and around the country are teaming up with banks to market medical credit cards and other loans to patients who lack the insurance or funds to pay for care. (Davis, 9/1)

It’s no secret America has one of the least-efficient healthcare systems in the world, far outspending other wealthy countries for poorer results. The high cost of everything from medical procedures to cancer drugs often gets much of the blame. But just as bad are the incentives baked into it. Most wealthy countries have government-controlled health systems that encourage doctors to keep costs down by directing patients to less invasive approaches at first. America’s works the opposite way. (Wainer, 9/4)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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