Google ends partnership with Amazon’s One Medical
CALIFORNIA, UNITED STATES — Google has decided not to renew its contract with Amazon’s primary care subsidiary, One Medical.
This marks the end of a significant relationship that provided Google employees with discounted healthcare services.
The current contract will expire at the end of 2024, according to confirmations from both companies.
Major setback for One Medical
The loss of this contract is a substantial setback for One Medical. Before being acquired by Amazon, Google was One Medical’s largest customer, contributing approximately 10% of its revenue in 2020.
This figure slightly decreased in 2021, after which One Medical ceased disclosing its financial results publicly.
A Google spokesperson clarified that Amazon’s acquisition of One Medical did not influence the decision to end the contract.
Google’s transition to Premise Health
Google is transitioning its on-campus healthcare services to Premise Health, a direct-to-employer healthcare company.
Premise Health, which boasts a network of roughly 800 centers, offers a broader range of services, including pharmacy, gynecology, and coordinated onsite care. Google first informed its employees of this switch last fall and began the transition this spring.
New on-campus centers have already opened in Chicago and Boulder, Colorado, with plans to expand to Austin, Texas, later this summer.
Impact on Google employees
Once the agreement with One Medical ends, Google’s nearly 180,000 employees will still have access to One Medical as an in-network provider, but they will need to cover the cost of their own memberships.
A spokesperson for Amazon stated, “One Medical is proud of the care we have provided to Google employees at a small number of locations on Google campuses, virtually, and in community centers.”
Amazon’s healthcare strategy
This development comes as Amazon continues to integrate One Medical into its broader healthcare strategy. Amazon acquired One Medical in February 2023 for $3.9 billion, aiming to disrupt the healthcare sector.
Despite this, Amazon has been implementing cost-cutting measures, including layoffs and office closures within its healthcare divisions.
Amazon has also discontinued several healthcare ventures, such as its hybrid physical and virtual care business and an initiative aimed at reducing medical costs for employers. However, One Medical remains a critical component of Amazon’s healthcare ambitions, with 10,000 employer clients and continued growth.
The termination of the contract between Google and One Medical signifies a pivotal shift in the healthcare landscape for both companies. While Google transitions to Premise Health for its employee healthcare needs, One Medical continues to navigate its role within Amazon’s evolving healthcare strategy.
