Amazon Clinic: Head scratcher or brilliant move? 

I have to admit that Amazon’s recent announcement that they are re-entering the virtual care space again has me scratching my head. The company grabbed headlines a few years ago when they rolled out the virtual care/home visit offering, AmazonCare, but it never really took off and will cease operations at the end of this year. Then this summer the company announced that they intend to acquire One Medical – which made me wonder why they would sunset AmazonCare, as One Medical would be a nice add-on and could bring a whole bunch of employer customers to their fledgling platform.

So, given the demise of AmazonCare, why would Amazon attempt enter this crowded and competitive market again so soon? From subsequent announcements, we know that Amazon Clinic, which will be offered in partnership with two established vendors, will provide virtual consultations with providers who will diagnose, treat and prescribe relatively common medications such as for birth control, smoking cessation, and erectile dysfunction and for a targeted list of conditions like migraines and allergies. Obviously, this pairs nicely with the pharmacy service Amazon already offers.

We have a few questions about models like these. If there is no connection to a broader provider network, how will the service ensure quality, appropriateness and safety of the drugs that are being prescribed? There are similar services in the market already, and it is generally left up to the member to let their physician know about what is being prescribed, resulting in little continuity of care and oversight.  

Of course, it may be that this is just a starting point. Where could Amazon and its partners take this new solution? Here are a couple of thoughts, which are pure speculation:

• A way to add the Amazon flavor to the One Medical product? One Medical already has a strong employer and consumer brand, and has begun to offer virtual care on their own. Perhaps Amazon is looking to place a wrapper around their clinic model with a fully digital experience. This could result in a quality advanced primary care model when paired with a user-friendly interface, which could address some of the concerns we raise above.
• Focus on the direct-to-consumer market? Amazon has already indicated that Amazon Clinic will not accept insurance or be integrated with the broader healthcare system – at least not right away. So it seems reasonable to assume that this offering is targeted mostly to consumers, and will enter a space with many other virtual care apps that allow consumers to pay subscription fees for their experience. We’ve seen this type of model – one that begins by providing support for lifestyle conditions – evolve into a comprehensive virtual care solution or even to physical clinics that address the consumer market and sit outside of the health plan.

Again, I’m just speculating. What is clear is that Amazon has taken a seat at the table in the healthcare market and intends to stay. Whether this particular offering takes off or meets the same fate as other ambitious healthcare ventures (remember Haven?) remains to be seen. However, with a name like Amazon, it seems like a question of when, not if, they will find the winning formula.