Based on a report from The Verge, Amazon plans to shut down its virtual health care service, called Amazon Care, later this year, as confirmed by two anonymous employees of the company. A non-disclosure agreement was signed, hence the anonymity of the two.
Amazon Health Services Senior Vice President Neil Lindsay stated that the operations would conclude on December 31 as the offerings of the service were not targeting the customers that the company is expecting.
He added, "This decision wasn't made lightly and only became clear after many months of careful consideration." This was shared by Christina Smith, Amazon's Spokesperson, to The Washington Post.
Amazon Care was launched last 2019, where customers will have the option to seek professional help virtually, whether through an in-app chat or video calls. An appointment can also be made through this where a nurse can be sent through their homes to conduct several tests and assist them with treatments.
CEO Andy Jassy described the company as an "iterative innovation" after prioritizing health care in every aspect as per his letter made for the company's shareholders.
What Will Happen to Amazon Care
Initially, this was made for employees that were based in Seattle but recently expanded nationwide just this February. Employees from all over 50 states were offered different services from Amazon Care, including Dallas, the District of Columbia, and Baltimore.
A report from Business Insider also states the plan of aiding employees regarding mental health was also in the works before the announcement of the closure as the company collaborates with the on-demand therapy company Ginger.
The decision to close Amazon Care was unexpected as Jassy was committed to expanding the business by investing in different companies.
Several reports were released this year regarding the negotiation of Amazon into buying other healthcare services such as One Medical with a deal of $3.9 billion and Signify Health. Both of these were similar to what Amazon Care is offering.
Amazon will also benefit from the deal as it will improve the employer market since One Medical has 8,000 companies that they are working with, as confirmed by Fierce Healthcare. Amidst all of this, the deal has not been closed yet.
Lindsay said that these negotiations open opportunities for the company when it comes to improving the experience of the customers in using the services that Amazon Care offers.
Amazon's Other Health Care Services
Amazon's service of ordering and delivery of prescription medicines called Amazon Pharmacy is still in operation. Last 2018, the company acquired PillPack for $1 billion. The cloud computing service called Amazon Web Services is also operating, which uses machines that analyze data regarding healthcare for different enterprises and large health organizations.
Related Article : Amazon Purchases Primary-Care Provider One Medical for $3.9 Billion
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Written by Inno Flores
