Could Amazon’s $3.9 billion acquisition be the breakthrough that will change primary care in the United States?
Regarding the One Medical deal, let’s start with the basics. Amazon’s first task is to make its new primary care venture successful. As one of us a previous article, primary care is difficult to sustain financially because of the low payment rates it commands from third-party payers. In fact, One Medical has been losing money because, though it charges a membership fee, it generates much of its revenue from the usual, inadequate, primary care reimbursements.
To remake the U.S. health care system broadly, and to assure One Medical’s financial success, Amazon will have to penetrate the commercial market with these new models. Employers collectivelyof Americans and generally pay much more generously than public payers.
For its part, Amazon has succeeded in the past by offering consumers seemingly limitless choice in its online markets. Constraining choice is unlikely to be viewed as “consumer centric.”
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