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Health Tech: Amazon Care forget about

August 25, 2022

Axios Pro Exclusive Content

Sarah Pringle

Happy Friday Eve, Health Tech enthusiasts. A whole lot has happened during the past 24 hours, so let’s reach it.

Illustration of an empty doctor's outfit with the Amazon smile logo as the face.
Illustration: Ada Amer/Axios

Just weeks after agreeing to get hybrid primary care company One Medical, Amazon announced yesterday afternoon that it’s shuttering Amazon Care its in-house hybrid primary care offering by the end of the entire year, Erin writes.

Why it matters: Amazon, which includes for a long time been laying the building blocks for an enormous healthcare footprint, is closing shop using one of its cornerstone in-house efforts in primary care.

Yes, but: The tech giant isn’t backing from the sector any time in the future.

Catch up quick: Amazon launched Care as a pilot because of its Seattle workers in offices and their own families in 2019 and contains steadily expanded this program since.

  • Last spring, the business announced the service will be available nationwide.
  • Soon after that, Amazon said it could start selling Care to employers.

Details: Within an email to his division’s employees, SVP of Amazon Health Services Neil Lindsay said Care wasn’t a sustainable, comprehensive tool because of its customers. (Amazon shared a copy of the e-mail with Axios.)

  • “Although our enrolled members have loved many areas of Amazon Care, it isn’t a whole enough offering for the large enterprise customers we’ve been targeting, and wasnt likely to work long-term,” Lindsay said.
  • He added that the business would end Amazon Care operations after Dec. 31 and that only teams owned by Amazon Care and Care Medical (the tech giant’s clinical partner) will be impacted.

What they’re saying: Using its pending healthcare acquisitions (let’s remember the rumors around Signify Health, Amazon is on the verge to become a healthcare “powerhouse,” BTIG analyst David Larsen wrote in a Wednesday note.

  • “Our view is that it creates more sense to get these platforms than it can to create new ones,” Larsen said.

Our thought bubble: Amazon risks duplicative efforts running both Care and something Medical, sufficient reason for the tech giant’s history of shuttering bold healthcare projects, we can not say we’re surprised.

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