Amazon To Shutter Telehealth ‘Care’ Business In Surprise Move
Stat reminds us it's less than a month since Amazon acquired One Medical, a "blockbuster" deal, but the retail giant will still shut down Amazon Care at the end of the year. The senior vice president of Amazon Health Services said it wasn't "the right long-term solution" for enterprise customers.
Stat:
Amazon To Shut Down Telehealth Venture Amazon Care By End Of Year
Amazon announced Wednesday it will shut down its medical venture Amazon Care at the end of the year, a surprising move less than a month after the tech giant’s blockbuster announcement that it plans to acquire One Medical. (Palmer and Aguilar, 8/24)
The Wall Street Journal:
Amazon To Shut Down Amazon Care Telehealth Unit
The move reflects the difficulty tech companies continue to face as they seek to disrupt the healthcare industry. Amazon didn’t disclose any changes for its other healthcare units, including pharmacy business. Amazon’s otherwise has shown great ambition in the healthcare industry, which Chief Executive Andy Jassy has earmarked as a priority. The company last month announced plans to buy 1Life Healthcare Inc. for $3.9 billion. 1Life operates a line of primary-care clinics under the name One Medical. Amazon is also among bidders for healthcare company Signify Health Inc., The Wall Street Journal has reported. (Herrera, 8/24)
Modern Healthcare:
Amazon To Shut Down Amazon Care At Year's End
“We’ve determined that Amazon Care isn’t the right long-term solution for our enterprise customers, and have decided that we will no longer offer Amazon Care after December 31, 2022," Neil Lindsay, senior vice president of Amazon Health Services, wrote in a Wednesday email to Amazon Health Services employees. Amazon shared the email with Modern Healthcare. (Kim Cohen and Perna, 8/24)
GeekWire:
Internal Memo: Amazon Care To Shut Down, 'Not A Complete Enough Offering' For Corporate Customers
Chrissy Farr, a health tech investor at OMERS Ventures, said there may have been potential overlap with One Medical “that may have been awkward to navigate.” One Medical also sells into employers and offers telemedicine services. “It could be a signal of where Amazon plans to focus its energies,” Farr said, noting that she did not have first-hand knowledge of the reasons for the decision. (Bishop and Soper, 8/24)
