Amazon, which announced its withdrawal from the “corporate” telemedicine service “Amazon Care” at the end of 2022, immediately launched a “personal” telemedicine service.
As Amazon embarks on mass layoffs and a changing operating environment, Amazon is launching a virtual medical service to address common conditions like allergies and hair loss.Amazon Clinic”, which will initially be available in 32 states across the United States.
Users select a healthcare provider on the service site and send a message, and the corresponding provider creates and provides a “treatment plan.” If a prescription is required, it will be mailed to the patient’s home via the online pharmacy Amazon Pharmacy.
As previously reported by Insider, it was codenamed “Katara” during development.
After years of failures and setbacks while declaring itself to be a “disruptor” of the healthcare industry, Amazon is trying to bounce back from the limited field of primary care. It can be said that it is one move.
Amazon Clinic launched just months after Amazon Care announced the end of the year for its online medical service for corporate members, but the two approaches are very different.
Providing medical services to people who pay online rather than finding people in need through intermediaries (employers in Amazon Care’s case)Amazon Clinic adopts a “direct-to-consumer (D2C)” business modelis.
As you know, Amazon’s strongest specialty is “e-commerce”, and in the fourth quarter of 2021 (October-December) alone, online store sales were 66.08 billion dollars (about 12.77 trillion yen). reach.
Blake Madden, founder of the healthcare newsletter Hospitalology, responded to Insider by email.
“Few companies in the healthcare industry are as consumer-first as Amazon.That’s why Amazon wants it. In the near future, I think it’s only natural that Amazon Clinic, which provides medical services at low prices, will be included in Prime member benefits.”
Lessons from Amazon Care’s setbacks
Amazon Care, which is set to end at the end of the year, has struggled to build momentum in corporate memberships and bring it to a “full range of services,” including expanded areas.
Neil Lindsey, senior vice president of the company’s healthcare business, said in an email to employees that the reason for exiting Amazon Care was that it didn’t attract enough large enterprise customers to justify the investment. there is
Amazon Clinic, on the other hand, could be successful this time if it competes in what it does best, especially if it captures the interest of Prime members.
And in that case, it will face competition from DTC startups like Hims & Hers and Ro, which offer online treatment plans and prescriptions for men’s ailments like thinning hair and erectile dysfunction (ED). is expected.
Amazon Clinic will follow in the footsteps of Hims and Law, as well as Thirty Madison, the same D2C healthcare company that targets chronic diseases, to address hair loss, erectile dysfunction, and more. The strategy is to start the service with treatment for less serious diseases such as acne and motion sickness, and gradually expand the coverage.
Naturally, it will be at odds with the advanced startups that make this area a standard medical treatment item.
Amazon Clinic will also use a mechanism to connect patients with other healthcare providers, such as SteadyMD, a healthcare recruitment agency for businesses.
Therefore, it can ignore the cost of recruiting medical workers, which has plagued Amazon Care (already under pressure due to the spread of online medicine).
As for the flow of the service, for example, when undergoing contraceptive surgery in North Carolina, follow the instructions on the site and submit necessary documents such as a medical questionnaire and photo ID. Users can then receive online consultations from clinicians affiliated with SteadyMD or HealthTap. They cost $30 and $42, respectively.
Relevance with Other Businesses in the Healthcare Field
According to a press release, Amazon Clinic is not “yet” linked to the health insurance system, but it is already connected to online pharmacy Amazon Pharmacy, which benefits users by reducing treatment costs.
For example, Prime members can save up to 80% on generic drugs and up to 40% on branded drugs, even if they don’t have medical insurance.
On the other hand, a partnership with primary care company One Medical, which Amazon acquired in mid-July for a whopping $3.9 billion (approximately 530 billion yen, the rate at the time of the agreement) (pending regulatory approval). about is unknown at this time.
The company has 188 clinics, nearly 800,000 individual members, and 8,500 corporate members, and it is no exaggeration to say that the development of connecting its customer base, medical infrastructure, and online medical care is Amazon’s long-cherished desire.
In a previous Insider article dated June 29, Citi Group senior analyst Daniel Grossright said:
“The next step is how to efficiently combine virtual care with face-to-face consultations.”
In the same article, Jefferies analyst Brian Tankilt said:
“At One Medical’s clinics, medicines can be delivered to patients through Amazon Pharmacy.In the retail business, Amazon has expanded its business from digital to physical, and we expect the same to happen in healthcare services. thinking about”
Madden, the founder of hospitality, points out that it is natural to offer new services that combine Amazon Clinic and One Medical.
“We believe that this service launch is a signal for Amazon to launch a more integrated strategy that links multiple services in the healthcare sector in 2023 or beyond.”
[Original: Amazon is taking another shot at offering healthcare and this time, it plays to the tech giant’s key strengths]
(Translation/editing/supplementary information: Chikara Kawamura)
Source: BusinessInsider
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