Alphabet’s subsidiary Google has decided not to renew its enterprise agreement with One Medical, a primary healthcare provider acquired by Amazon, once the current contract expires at the end of this year.
This move will end a long-standing partnership that provided Google employees with discounted healthcare services.
The internal document obtained by Business Insider (BI) reveals that Google, which has been a significant client of One Medical for many years, will transition its on-campus healthcare services to another provider, Premise Health.
This change comes despite the acquisition of One Medical by Amazon in February last year in a $3.9bn deal.
The report highlighted that until 2020, Google's partnership with One Medical was substantial enough to account for 10% of the healthcare provider's net revenue.
However, this figure dipped below 10% in 2021, and further financial details ceased being public after Amazon's acquisition.
Amazon's ownership has seen various cost-cutting measures, including layoffs and the discontinuation of services such as Amazon Care and the Halo fitness tracker.
In February this year, Amazon reportedly said it would lay off hundreds of its staff in its healthcare unit, which included One Medical chain of doctors’ offices and Amazon Pharmacy.
However, BI cited a Google spokesperson who confirmed that the decision to end the partnership with One Medical was not influenced by Amazon's takeover.
The spokesperson also noted that Google's campuses already feature Premise Health-operated centres, offering a broader range of services to employees.
While the direct agreement with One Medical will cease, Google employees will still be able to access One Medical services as an in-network provider, meaning that Google's health insurance will be accepted at One Medical offices.
An Amazon spokesperson wrote to BI in an email statement that Google employees and their dependents would continue to have their One Medical memberships "sponsored" by Google through the end of this year.
One Medical provides accessible primary care, with a membership model that extends to more than 8,500 companies offering employee health benefits.
