Amazon will integrate its Amazon Clinic-branded telehealth business into One Medical's physician-led medical services. … [+]
Amazon is merging its Amazon Clinic-branded telehealth business into its physician-staffed One Medical Clinic and virtual care businesses to simplify the delivery of primary care to customers and patients.
A year and a half ago, Amazon launched Amazon Clinic as a “pay-per-visit” telehealth service available on Amazon.com and the Amazon app, and expanded the service last year to allow patients to receive virtual care in all 50 states. Meanwhile, Amazon spent nearly $4 billion last year to acquire One Medical, which runs doctor-staffed clinics and its own virtual care business.
The company announced on Thursday that it would consolidate its “Amazon Clinic” branded virtual health business under the Amazon One Medical brand. Amazon said the change, which will see the company drop the “Amazon Clinic” name, is effective immediately.
“Today, we're changing the name of our service from Amazon Clinic to Amazon One Medical pay-per-visit and improving it by making the price per visit even more affordable and reducing the steps customers have to start a visit on Amazon.com or in the Amazon app,” Amazon said in an announcement about Amazon Clinic, a service that connects customers with doctors and other clinicians who have contracted with Amazon to provide virtual care.
““Customers currently have two options when receiving care with Amazon One Medical: pay-per-visit telehealth for over 30 common conditions (such as conjunctivitis, flu, sinusitis, etc.), or a membership where customers pay a monthly or annual fee for on-demand virtual care, easy scheduling of same-day or next-day appointments at One Medical offices, and a differentiated primary care experience at over 150 offices across the U.S.,” Amazon said.
In interviews earlier this year, Amazon executives said Amazon One Medical planned to add more than 15 new offices and expand to two more U.S. markets by the end of the year. Amazon One Medical has about 240 primary care offices in more than 20 U.S. markets and plans to expand in existing markets as well as add new locations in Milwaukee and Hackensack, New Jersey, later this year.
An Amazon spokesperson said Amazon Clinic's telehealth business is growing but declined to disclose the number of virtual visits the service offers. “Amazon Clinic telehealth services will continue and will now be operated as a paid telehealth visit service under Amazon One Medical,” the company said in a statement.
The announcement comes at a time of trial, error and success in the still relatively young retail healthcare business.
While Amazon has been expanding its primary care and virtual care services and rebranding, Walmart said in April it planned to close its Walmart Health Centers and virtual care operations, saying it didn't see a sustainable business model for primary care.
Meanwhile, Walgreens, which invested billions in doctor-staffed clinic operator Village MD, has struggled somewhat with rapid expansion and an inability to fill patient panels in certain markets it is now exiting. In March, Walgreens reported a loss of about $6 billion in the second quarter, due in large part to a decline in the value of its investment in Village MD.
And CVS Health, which has operated more than 1,000 nurse-staffed MinuteClinic-branded clinics for years, said earlier this year that the health care giant is sticking with its Oak Street Health expansion strategy, opening 50 to 60 senior care clinics next year. CVS acquired Oak Street last year for $10.6 billion in cash, gaining a large network of doctor-staffed clinics that primarily serve seniors. Oak Street has more than 200 medical centers in 25 states, and CVS plans to open dozens more.
For Amazon, the company said it remains focused on making health care more affordable, simple and convenient through its pay-per-visit model and membership fees for Amazon One Medical.
“We're focused on improving the experience for both episodic and continuing care,” Neil Lindsay, senior vice president of Amazon Health Services, said in a statement accompanying the announcement. “Amazon One Medical's pay-per-visit telehealth services make it easier for customers seeking care to see a provider with fewer clicks and an even lower price per visit. With Amazon One Medical, customers can choose the healthcare services that best fit their needs, whether that's a single visit for an episodic, common condition, or a membership that supports ongoing access to care through an app that makes it quick and easy to manage on-demand virtual care, appointments, prescription management, and more.”
Amazon One Medical's pay-per-visit telehealth service charges $29 for a message visit and $49 for a video visit, according to the company.
“Amazon One Medical's pay-per-visit telehealth services are a great option for customers who don't live near a One Medical office or who already have a healthcare provider but need fast, convenient access to address temporary symptoms,” Amazon said. “With a One Medical membership, you can pay for on-demand virtual care, easy booking of same-day or next-day appointments at a One Medical office, and a differentiated primary care experience. This is perfect for customers who live near a One Medical office and want a primary care doctor and care team to help manage their overall health.”
