Why Amazon sunsetted some of its healthcare projects

In the past two years, Amazon has shut down two of its healthcare endeavors as its outcomes didn't meet the company's expectations, and as CEO Andy Jassy is implementing numerous cost cuts. 

Haven, the company's healthcare endevor with JPMorgan and Berkshire Hathaway aimed at reforming employee healthcare, disbanded in 2021, three years after its creation. 

People close to the matter said the three founding companies executed their own projects separately with their own employees. 

In recent months, Amazon has also shut down its telehealth service Amazon Care. 

In the internal memo to Amazon Health Services employees, Neil Lindsay, senior vice president of Amazon Health Services, said, "we've determined that Amazon Care isn't the right long-term solution for our enterprise customers, and have decided that we will no longer offer Amazon Care." 

The company, which launched in 2019, said the telehealth service wasn't a "a complete enough offering for the large enterprise customers," according to the memo. 

Both of these moves came as Jassy took over as CEO in July 2021. 

Since then, the CEO has been in cost-cutting mode to preserve cash as Amazon's stock is down 33 percent for the year, and is on pace for its worst year since 2008, according to CNBC.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>