Retail giant Amazon has expanded its service offerings to include healthcare in recent years, leaving executives and physicians wondering how the company will disrupt the industry moving forward. But how did what was originally an online bookseller become an all-encompassing player in healthcare?
In its nearly 30 years of operations, Amazon has continually increased its foothold in new markets, now boasting a valuation of $1.6 trillion.
Amazon was making waves in the healthcare market as early as 2016. A CNBC study from that year found that 34% of physicians used the company to purchase medical or dental supplies.
In 2017, the stock of dental supply company Henry Schein initially dropped by 5% after Amazon entered the distribution market, purchasing products directly from dental manufacturer Dentsply Sirona, according to CNBC.
In 2018, the company formed a collaborative entity with JPMorgan and Berkshire Hathaway, with a goal of developing methods of reforming the healthcare system and reducing healthcare costs for employees. It also launched "Basic Care," a line of over-the-counter health products such as ibuprofen and hair regrowth treatment and formed a partnership with Arcadia Group, a business consultancy group, to market consumer-use medical devices for issues such as hypertension and diabetes management.
Alexa, Amazon's virtual assistant, was updated to offer patients the ability to schedule appointments with enrolled providers through a partnership with healthcare artificial intelligence company Nimblr. It also filed a patent for Alexa technology to detect when users are sick and coordinate medication purchases.
The company also acquired online pharmacy service PillPack for approximately $1 billion.
In 2019, Amazon launched Amazon Care, a healthcare program to offer its Seattle employees virtual health clinics and in-home follow-ups. Later that year, the company expanded those services to all employees in the state of Washington and acquired medical technology startup Health Navigator to support its Amazon Care services.
In 2020, Amazon launched its first wearable device, Halo, and its own online pharmacy, allowing patients to purchase prescriptions online. It also formed a partnership with Crossover Health, a primary care clinic chain, to develop 20 employee health centers in five cities.
In 2021, it expanded its Amazon Care services to employees in all 50 states and Washington, D.C., and began offering those services to other employers. In May of that year, it scored its first customer for those services: Precor, a fitness company acquired by Peloton. It also rolled out virtual mental healthcare for its employees and their families.
It rounded out the year by expanding its in-person Amazon Care services in Seattle, Washington, D.C., Arlington, Va., and Baltimore.
In 2022, Amazon agreed to buy primary care company One Medical for $3.9 billion. It also announced plans to cease operations of its Amazon Care service for employers at the end of the year and unveiled a new virtual care offering called Amazon Clinic.
In 2023, One Medical formed collaborations with Edison, N.J.-based Hackensack Meridian Health and CommonSpirit Health's Virginia Mason Franciscan Health, allowing specialists from both health systems to deliver care to Amazon's primary care patients. It also released RxPass, a $5 per month medication prescription service, providing access to commonly prescribed generic medications for more than 80 common health conditions, and opened a $100 million generative artificial intelligence center.
Amazon has started 2024 with a splash: One month in, the company launched digital health monitoring services through a partnership with Omada Health as well as integrated One Medical services with Amazon Pharmacy, giving patients and providers increased access to medication consults.