Amazon’s recent announcement to shut down Amazon Care solidified their move away from a virtual only approach. What is the impact of this shutdown on their plan to acquire One Medical and what does it tell us about evolving models of care?
Why it’s Notable:
The acquisition of One Medical creates the potential for Amazon to move from providing just another telehealth service to becoming a more full-sized health service offering with extensive access to doctors, providers and 200 in-person clinics across the US.
Multiple sources report that the decision to shutter Amazon Care was made prior to and separate from Amazon’s plans to acquire One Medical. However, Amazon’s step back from Amazon Care just one month after announcing their plans to acquire One Medical, shows the market’s need for a more integrated approach and Amazon’s responding shift in strategy. One Medical offers a primary care model of brick-and-mortar clinics, telehealth, and pharmacy services.
Amazon is also expected to make a bid for Signify Health, a home health technology and services provider, placing itself in competition with CVS and UnitedHealth Group. CVS was also reportedly interested in acquiring One Medical, but was ultimately rejected. If CVS wins Signify Health it would be a big step towards their ability to scale in primary care. We're seeing these and other major players race to claim a foothold in the hybrid-integrated care space.
Industry Implications:
With big tech, managed care providers, private-equity firms, and others looking to acquire or merge their way into primary care, Amazon is in good company when it comes to this shift in strategy. Along with CVS, UnitedHealth Group’s Optum is also making similar plays with their in-person and virtual service offerings.
We are starting to see rising competition in new models of care that are more focused on the unification and integration of stakeholders rather than point of care. Technology will be a key enabler of this, but the focus seems to be shifting away from the ways technology can disrupt healthcare to how it can support a more unified solution and integrated care approach.
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For more on Amazon’s previous attempts in healthcare and their plans with One Medical (see here)