Amazon CEO Andy Jassy called the U.S. healthcare system “quite frustrating” in an April letter to shareholders, and outlined plans to expand Amazon Pharmacy and One Medical to improve access and transparency.
“Healthcare, especially in the U.S., is quite frustrating. It’s hard to get fast appointments with primary care physicians, often harder with specialists. There’s a lot of waiting around. Physicians spend only a few minutes with patients.” Mr. Jassy wrote. “Then, patients have to drive somewhere (often not close) to get their medications. And, when they get to the pharmacy, they’re often surprised by the pricing, what’s covered by their insurance, and what you can easily access that’s not behind a locked shelf.”
He said these challenges are driving demand for Amazon’s healthcare offerings.
“It’s why you see such positive customer sentiment and growth for Amazon Pharmacy and Amazon One Medical,” Mr. Jassy wrote.
He added that the company plans to continue iterating quickly on medication selection and price transparency for Amazon Pharmacy, and expand physical clinic capacity for One Medical.
Amazon completed its $3.9 billion acquisition of One Medical — a virtual and in-person primary care company — on Feb. 22, 2023. Since then, it has expanded One Medical’s presence in the healthcare space.
Amazon Pharmacy, which launched in 2020, is also growing. The company told Becker’s it plans to expand the service to 20 new U.S. cities in 2025.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.