Amazon (AMZN) Hits a Six as it Revamps Health Services

Tech giant Amazon (AMZN) has revamped its healthcare business to capture a greater share of the U.S. market and boost same-day drug delivery.

New Units

According to a CNBC report, Amazon is restructuring its health business into six new units in order to simplify its services and recover from the loss of a handful of top health bosses in recent months.

These include One Medical Clinical Care Delivery, One Medical Clinical Operations and Performance, AHS Store, Tech and Marketing, AHS Compliance, and AHS Pharmacy Services.

The company has been working on an overhaul for the past several months, the report said, adding that the online retailer has not conducted any broad layoffs as part of the plan.

Amazon’s chief medical officer, Sunita Mishra, stepped down last month, and another top executive, Aaron Martin, who has been the vice president of the healthcare unit, is also set to step down, the report said.

Dr. Vin Gupta, who joined in 2020 and served as chief medical officer of Amazon Pharmacy, left in February, followed by Trent Green, whose last day as CEO of Amazon’s primary care chain One Medical was in April.

New Pharmacies

“Our leadership team has been focused on simplifying our structure to move faster and continue to innovate effectively,” Neil Lindsay, senior vice president of Amazon Health Services, told CNBC. “One of the problems we’re trying to solve is the fragmented experience for patients and customers that’s common in healthcare.”

Amazon has been involved in healthcare for nearly a decade. It bought online pharmacy PillPack for about $750 million. Two years later, it launched its own offering called Amazon Pharmacy. It then bought One Medical for $3.9 billion in 2023. It is also making strides in health technology.

However, it has had its challenges, including closing its telehealth service Amazon Care in 2022. The healthcare market is also highly competitive with slim margins to be had, particularly in primary care.

Last year, Amazon said that its pharmacy business had “doubled the number of customers” over the previous 12 months but did not give any figures. It hopes to open pharmacies in 20 new cities this year, boosting same-day medication delivery.

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