Amazon taking big gambles in the healthcare space
Amazon has yet to make its foray into the healthcare industry profitable, The Wall Street Journal reported Sept. 15.
Although Amazon has found success in online shopping and cloud computing, the assumption it will yield similar results in other industries hasn’t proven true, according to the publication.
Healthcare, which has been a primary focus for the company’s CEO Andy Jassy, hasn’t found much success.
One of the company’s first endeavors into healthcare, Haven, a joint endeavor with JPMorgan and Berkshire Hathaway, also disbanded after only three years, and the company’s pharmacy unit laid off about 80 employees in July.
Now Amazon is betting on its recent acquisition of virtual and in-person primary care company One Medical despite it having experienced deepening losses before the acquisition and its CEO, Amir Dan Rubin, announcing plans to leave the company later in the year.
Despite this, Amazon says its healthcare business is in its early days and that it is pleased with the progress it is making.
Meanwhile its pharmacy business, Amazon Pharmacy, has been landing contracts with payers including Centene Medicare Advantage and several Blue Cross Blue Shield affiliates.