Reforming healthcare stands as the multi-billion challenge that so many companies want to take on.
Apple (AAPL) has its watches, fitness app, and a slew of ways that aren't quite medical to help you stay healthy (because getting a device approved for medical purposes requires FDA approval). Alphabet (GOOGL) owns FitBit and, while the company most people call Google hasn't done much with its fitness bands and watches, it did partner with Amazon, J.P. Morgan (JPM), and Warren Buffett's Berkshire Hathaway (BRK.A) on an ill-fated attempt to disrupt healthcare.
CVS Health (CVS) and its pharmacy chain rival Walgreens (WBA) have also tried to disrupt healthcare, albeit in a more traditional way. CVS has added Minute Clinics to many of its locations to offer basic medical care as well as "health concierge" services to help customers navigate a space that can be very challenging.
Walgreens has gone even a step further, investing $5.2 billion in VillageMD, a company that offers primary care medical services. The company plans to open "at least 600 Village Medical at Walgreens primary care practices in more than 30 U.S. markets by 2025 and 1,000 by 2027, with more than half of those practices in medically underserved communities." according to a press release.
It's a crowded space that's very challenging at least partially because insurance companies dictate a lot of healthcare decisions (although CVS does own one of those). And, it's going to get a lot more crowded as Amazon (AMZN), fresh off its failure with Haven, its partnership with Google, and Berkshire Hathaway, wants to take another shot at what may be the biggest prize out there.
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How Does Amazon Plan to Disrupt Healthcare?
Amazon generally does not take failure well (Fire Phone aside) and the Jeff Bezos-founded company generally tries a new angle when its first efforts don't succeed. It has been quietly doing that in healthcare since the Haven debacle.
The retail giant has been low-key testing Amazon Care since 2019 with a stated goal of bringing "the most patient-centric health care to customers when and where they need it." Call it a Teladoc (TDOC) rival mixed with a way to disrupt your primary care doctor and some of what CVS and Walgreens are trying to do.
"Amazon Care combines the best of virtual care and in-person services, and as more and more organizations look for convenient, comprehensive, high-quality health care solutions, we’re seeing growing demand and excitement for Amazon Care’s unique hybrid care offering," the company said in a press release.
In what could be seen as a blow to Teladoc, Amazon has rolled out the virtual part of Amazon Care nationwide. It has also expanded its in-person services to 20 more American cities in addition to Seattle, Baltimore, Boston, Dallas, Austin, Los Angeles, Washington, D.C., and Arlington where it already operates. The new markets include San Francisco, Miami, Chicago, and New York City.
"The COVID-19 pandemic has led to an increased demand to bring care to patients’ homes — whether that be virtually or through in-home care services," the company shared. "Amazon Care is uniquely positioned to fill a critical gap in the health care system because it combines the best of virtual care with a new approach to in-person care. The combination allows patients to receive a wider range of care, from on-demand primary care to chronic care management, in the comfort of their home."
Teladoc Has Its Limits, Amazon Care May Not
A telemedicine appointment only goes so far. Online doctors can't fully examine you and while they can order tests, getting them requires contacting another provider. Amazon looks to offer both services within its one product.
“Patients are tired of a health care system that doesn't put them first. Our patient-centric service is changing that, one visit at a time,” Amazon Care Director Kristen Helton said. “We’ve brought our on-demand urgent and primary care services to patients nationwide. As we grow the service, we’ll continue to work with our customers to address their needs."
The Amazon service offers a hybrid in-person and telemedicine approach including both urgent and primary care services. These include COVID-19 and flu testing, vaccinations, treatment of illnesses and injuries, preventive care, sexual health, and prescription requests and refills.
"When issues can’t be resolved over video, Amazon Care will dispatch a nurse practitioner to a patient’s home for additional care where in-person care is available, ranging from routine blood draws to listening to a patient’s lungs," the company shared.
