According to an internal memo, Amazon is discontinuing its Amazon Care telehealth service, marking a surprising turn in its recent expansion into the healthcare sector.
Amazon Care launched at its Seattle headquarters in 2019, initially as a pilot program before expanding nationwide, but will cease to exist as of Dec. 31, according to a company email from Amazon Health Services CEO Neil Lindsay. Will go
The service is a hybrid of virtual, in-home primary and emergency care services with no physical locations. Earlier this month it reportedly worked with psychiatric company Ginger to offer behavioral health support.
Lindsay wrote that it “wasn’t the right long-term solution for our enterprise customers.”
“This decision was not easy for us and only became clear after several months of careful consideration.
“While many aspects of Amazon Care have appealed to our enrolled members, it is not a fully adequate offering for the large enterprise customers we are targeting and will not work in the long term,” Lindsey said.
In February, Amazon Care announced that several companies are using the service, including Silicon Labs, True Blue and Whole Foods. They also said they had a patient satisfaction rating of 4.7 out of 5.
Amazon’s push into healthcare
The move comes despite Amazon’s even broader foray into the healthcare industry.
Amazon acquired prescription company PillPack for $753 million in 2018, launched an Amazon pharmacy service in 2020, and acquired One Medical for $3.9 billion in July of this year.
Recently, Amazon reportedly made a bid for home health services provider Signify Health.
The move is a possible indicator that telemedicine isn’t as attractive as predicted, with a recent analysis by Trilliant Health showing that demand for such services fell nearly 60% from April 2020 to April 2022.
However, there’s no sign that Amazon is supporting its other health initiatives.
Amazon did not immediately respond to a request for comment.
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