Vital Signs 2022

VITAL SIGNS

Consolidation Grows in the Face of Growing Pressure This year saw further consolidation in the healthcare provider space, as several notable retailers have made significant investments into primary care providers. Perhaps the most notable was Amazon’s purchase of One Medical for $3.9 billion. The purchase will enable Amazon to enter the primary care space with One Medical’s 188 sites across 29 different markets, offering fast and flexible service close to major office and residential areas. CVS also has expanded the offerings of their pharmacies to offer more primary care services. CVS’s partnership with Aetna plans to convert portions of CVS retail outlets to medical office under the branding of HealthHUB—combining this with the shuttering of 900 stores to drive traffic to key locations. “Payviders,” or insurers/payers providing direct healthcare through their own clinical teams, have been a growing phenomenon. UnitedHealthcare’s Optum Health vertical announced plans to acquire several smaller clinical entities, including Atrius Health and Kelsey-Seybold Clinic, in order to expand scale of clinical sites. The partnership also seeks to acquire service providers such as Change Healthcare and LHC to expand the planned offerings. As pressures continues on health systems and larger-scale offerings for certain specialties such as primary care and urgent care grow, we can expect further M&A activity going into 2023.

Perhaps the most notable was Amazon’s purchase of One Medical for $3.9 billion.

VITAL SIGNS 2022: PERSPECTIVES ON HEALTHCARE AND MEDICAL OFFICE BUILDINGS