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Alphabet Inc.'s Google has severed its business ties with One Medical, a primary healthcare provider acquired by Amazon.com Inc. for $3.9 billion.
What Happened: Google, previously One Medical’s largest business client, has decided to terminate its enterprise agreement with the healthcare company following Amazon’s acquisition of One Medical last year, reported Business Insider.
The agreement, which offered Google employees discounted or free One Medical memberships and operated One Medical care centers at some Google office locations, is set to expire at the end of 2024.
Google was an early supporter of One Medical and was its largest business customer for many years. Until 2020, One Medical disclosed that Google accounted for 10% of its net revenue.
In 2021, that dipped below 10%, and then One Medical stopped publicly sharing financials after Amazon acquired it.
See Also: Gilead’s $42.5K Priced HIV Drug Could Be Made At Just $40 Annually
A Google spokesperson confirmed to the publication that the existing relationship with One Medical is changing after 2024 but stressed that the decision has nothing to do with Amazon’s new ownership of the healthcare provider.
The existing One Medical centers on Google’s campus have already transitioned to Premise Health to provide more services like pharmacy, gynecology, and coordinated care on-site, the spokesperson added.
An Amazon spokesperson told Business Insider that Google employees and their dependents will continue to have One Medical memberships “sponsored” by their employer through the end of 2024.
Why It Matters: The termination of Google’s business relationship with One Medical comes amid significant changes within the healthcare provider.
In September, CEO Amir Dan Rubin stepped down from One Medical after six years at the helm, a little over a year after Amazon’s acquisition.
This leadership shift was followed by major job cuts in February, as part of a cost-saving initiative aiming to save One Medical $100 million.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Amazon
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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