Amazon Looks to Boost Its One Medical Service With Prime Members
But don’t expect a sudden additional buildout of medical offices.
When Amazon acquired healthcare provider One Medical last year, the move was a clear expansion of a business line Amazon has been developing over time, using a combination of virtual and in-person services and facilities.
Now it’s looking to expand the number of customers by opening the doors to members of its Prime program at an additional $99 a year, basically a $100 discount off the standard One Medical membership fee, according to the company. Member can add additional family members for $6 a month or $66 a year.
What the impact might be on commercial real estate in the form of additional medical office leasing is unclear.
“The One Medical membership covers unlimited access to 24/7 on-demand virtual care, including video chats with licensed providers within minutes and an easy in-app ‘Treat Me Now’ feature that lets members get fast care for common concerns like cold and flu, skin issues, allergies, urinary tract infections, and more,” is how Amazon describes the extension of the offering to Prime members. “Virtual care is available nationally, and members don’t incur any additional costs for on-demand virtual care services—it’s all covered by the membership. And One Medical’s app makes it easy for members to navigate care and stay on top of their health journey—from prescription management, secure messaging with providers, follow-up action items after appointments, and more.”
The emphasis on virtual care makes sense for Amazon because it is a more cost-effective method of delivery. The annual fee doesn’t cover clinical services. A GlobeSt.com examination of the One Medical site and in-person locations shows that the service works with major hospital and healthcare services as partners, reducing Amazon’s need to hire and support providers.
What it all means for the CRE industry is probably a lot less than many might like. Amazon claims “hundreds” of locations across the country, but images make them look like modest-sized office suites. Big facilities would most likely belong to the local partners. But it’s early on.
“My view is it’s a first foray,” Shawn Janus, Colliers national director of healthcare, tells GlobeSt.com. “Over time, I think they’re going to become more of a competitor to primary care physicians.”
“From a real estate perspective, I’m not sure it has a huge effect,” Janus adds.