Healthcare is not so turnkey, after all. Amazon apparently learned this the hard way, again. Just a year after its national expansion of Amazon Care, which provided virtual and in-person healthcare to companies such as Hilton and Whole Foods, the company said it is shutting down the healthcare venture at the end of the year.
“We’ve determined that Amazon Care isn’t the right long-term solution for our enterprise customers, and have decided that we will no longer offer Amazon Care,” Neil Lindsay, senior vice president of Amazon Health Services, said in an email Wednesday.
This comes after workers voiced operational concerns. Some employees and managers disclosed to The Washington Post that the speed with which the company was trying to build Amazon Care caused friction with some medical professionals who questioned the care delivery approach. The company’s push to license Seattle-based clinical staff in multiple staff also made it hard for the clinicians to keep track of state regulations. And the decision to go with a cheaper electronic health record affected care delivery.
It’s hard not to chuckle just a little bit at this denouement. To see one of the most influential brands in the world meet its match with the American healthcare system is somewhat comical. And keep in mind: This is not the first time Amazon has tried and failed at healthcare. In 2018, it joined forces with Berkshire Hathaway and JPMorgan Chase to form Haven, which disbanded less than three years after its launch.
But the outcome is not surprising. Anyone who works in this industry knows that U.S. healthcare is as much regulation as altruism, as much red tape as reward. Healthcare is a distinctly different animal compared to retail product delivery or grocery stories, industries that Amazon seemingly has mastered. It requires patience, investment and a willingness to brave the unforgiving regulatory thicket that defines this industry. Furthermore, despite numerous recent technological advancements, it remains a high-touch industry. Thank goodness for that.
Healthcare is not for everyone. If Amazon truly is committed to this space — which it seems to be as it recently acquired One Medical Care for $3.9 billion and is in the running for Signify Health — it must recognize that the goods in question are not bananas or books or car parts. They are people. A perfect science they are not.
Liza Berger is editor of McKnight’s Home Care. Email her at [email protected].
