How Amazon's One Medical buy ignites a hybrid care war
The hybrid care war is on, Jeff Gamble, the founder of concierge primary care network Rezilient Health, suggests in a sharp Twitter thread.
Why it matters: In the wake of Amazon's $4 billion One Medical purchase, industry observers and entrepreneurs are all asking:
- What's next for CVS, who was reportedly in talks to acquire the primary care clinic operator — and what will it mean for the future of hybrid care?
Details: Gamble explores several of CVS' options to compete in the hybrid care sector. It could:
- Acquire a mid- to late-stage hybrid care startup, then integrate that company into its 9,900+ retail locations.
- Buy Teladoc (Nasdaq: TDOC), and leave the responsibility of creating hybrid solutions in its hands.
What they're saying: Of the two scenarios, Gamble notes that the TDOC option is "way more fun." Why?
- CVS and Aetna merged, and TDOC is already Aetna's exclusive telehealth provider.
- TDOC has already made a host of acquisitions, from diabetes-focused health tech startup Livongo to device-centric Intouch Health.
- Either way, "that integration would be absolutely wild," Gamble notes. "If I’m working in operations or infrastructure at CVS, I’m crying at the idea of that latter option."
💭 Our thought bubble: Several other public value-based care players could be takeover candidates as CVS and strategics scramble to compete.
- We're watching CareMax, Cano, Agilon, ApolloMed and Oak Street Health, whose stock was up 12.9% in the wake of Amazon-ONEM.
🍿 The takeaway: "Whichever way CVS goes, it’s going to accelerate a cascade of retailers pursuing an acquisition strategy to rapidly enter the hybrid care space," writes Gamble. "Grab your popcorn."
- One thing is certain — the pressure to own primary care is on.