Amazon's healthcare supply chain push is losing steam, survey suggests

Alia Paavola - Print  | 

Amazon's entry into the healthcare supply chain — namely its push to distribute medical supplies and equipment  — has lost momentum, according to Bloomberg, which cited a survey conducted by investment banking company UBS Group.

This year, hospital purchasing managers indicated that they were buying fewer medical supplies from Amazon than last year, but they're turning to Amazon for more office supplies, according to the survey. 

The UBS survey found that while hospitals still expect to increase medical supply purchases from Amazon, the percentage of respondents in talks for sourcing agreements with the online retailer has declined from 11 percent last year to 7 percent this year. 

Reports first surfaced in February 2018 revealing that Amazon was working to turn its developing medical supplies business into a major supplier to U.S. hospitals and outpatient clinics. 

"Amazon Business is available in eight countries, serving healthcare customers of all sizes, from large IDNs to small and medium community hospitals. In fact, more than half of the 100 biggest hospital systems in the U.S. make purchases through Amazon Business. We also serve customers from physician and dental offices to senior living and long-term care facilities ... These healthcare customers love the familiar shopping experience that offers business-only pricing, single unit and quantity discounts on millions of eligible items, fast, free shipping with Business Prime, as well as increased control and transparency of their spending," said Chris Holt, global healthcare leader of Amazon Business, in a statement to Becker's.

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