Those changes include the shuttering of several corporate offices, a new role for the chief financial officer, and a stronger focus on a regional corporate structure, according to an internal email from One Medical’s CEO Trent Green, obtained by Business Insider.
The moves signify the adjustments One Medical is making as its parent company, Amazon, has been pressuring the healthcare company to reduce costs, as BI previously reported. One Medical had an operating loss of $420 million in 2022, the last year it publicly disclosed financial results before being acquired by Amazon for $3.9 billion.
One Medical will close its corporate offices in New York City, Minneapolis, and St. Petersburg, Florida, by the end of February while downsizing its San Francisco office to just one floor, the email said. One Medical will also look for ways to take advantage of Amazon’s own corporate office space going forward.
“We have made the decision to reduce our investment in corporate real estate and to invest more in our members’ experience,” the email said.
In an email to BI, an Amazon spokesperson said that One Medical is reducing its investment in corporate office space because “many One Medical corporate employees currently work remotely.” Amazon, meanwhile, is enforcing a strict return-to-office mandate that requires most corporate employees to be in the office at least three times a week.
Green also announced in the email that Bjorn Thaler, One Medical’s CFO, will transfer to a new role, reporting directly to Amazon’s healthcare boss, Neil Lindsay.
In this new “strategic growth initiatives” role, Thaler will “focus on identifying healthcare trends” and driving new projects that help provide lower costs and improved services to its customers, the email said. As part of the move, One Medical executives and teams across finance, legal, and technology will report to Amazon’s healthcare business, reflecting a tighter integration between the two companies.
Amazon’s spokesperson said the reorganization will help One Medical better leverage Amazon’s resources and provide employees with more opportunities across Amazon’s healthcare business.
Additionally, One Medical will double down on a regional operating model that gives leaders in those areas greater responsibility. One Medical is expanding its core regions from four to seven geographies made up of the Bay Area; the New York tristate area and New England; DMV (Washington, DC, Maryland, and Virginia) and the Southeast; the Pacific Northwest; the Southwest; Southern California; and Texas and the Midwest, the email said. The company also created a new general manager role for those regions to lead operations.
“Leaders in these seven areas will have accountability for the clinical and operational aspects including existing Health System Partner relationships. They will also work with quality, growth, and finance partners to manage the full performance of their areas,” the email said.
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