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One Medical announced its plan on Monday to acquire Iora Health, expanding its primary care services for the Medicare population. The all-stock transaction, valued at $2.1 billion, would bring together two longtime players in the virtual care space and add to One Medical’s already-growing physical footprint by taking on Iora’s 47 in-person medical offices, now serving about 38,000 Medicare patients.

“Today it seems obvious and almost fashionable to say that technology-powered primary care is the key to improving our health care system,” said Rushika Fernandopulle, CEO of Iora Health, in a call with investors Monday. “But almost 20 years ago small predecessor practices that became One Medical and Iora Health simply decided to start over, to build our own technology, membership models, salaried provider practices, and to emphasize relationships and not transactions.”


The acquisition will also allow One Medical to take advantage of Iora’s risk-based reimbursement models for seniors.

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