Happy Friday night, Health Tech enthusiasts. A lot has happened in the past 24 hours, so let’s get to it.
Only a few weeks after agreeing to buy hybrid primary care company One Medical, Amazon announced yesterday afternoon that it is shutting down Amazon Care – its in-house hybrid primary care offering – at the end of the year, Erin writes.
Why is this important: Amazon, which for years has been laying the groundwork for a massive footprint in healthcare, is shutting down one of its foundational internal efforts in primary care.
Yes, but: The tech giant isn’t backing down in the sector anytime soon.
Catch up fast: Amazon launched Care as a pilot project for its Seattle office workers and their families in 2019 and has been expanding the program ever since.
- Last spring, the company announced that the service would be available nationwide.
- Shortly after, Amazon announced that it would start selling Care to employers.
Details: In an email to employees in his division, Amazon Health Services Vice President Neil Lindsay said Care was not a sustainable, comprehensive tool for its customers. (Amazon shared a copy of the email with Axios.)
- “While our registered members liked many aspects of Amazon Care, it’s not a comprehensive enough offering for the large enterprise customers we’re targeting and wasn’t going to work long term,” Lindsay said. .
- He added that the company would end Amazon Care operations after December 31 and only teams owned by Amazon Care and Care Medical (the tech giant’s clinical partner) would be impacted.
What they say : With its healthcare acquisitions underway (let’s not forget the rumors surrounding Signify Health, Amazon is poised to become a healthcare ‘powerhouse’,” BTIG analyst David Larsen wrote in a note from Wednesday.
- “Our view is that it makes more sense to buy these rigs than to build new ones,” Larsen said.
💭 Our thought bubble: Amazon risks duplicating Care and One Medical, and with the tech giant’s history of shutting down bold healthcare projects, we can’t say we’re surprised.