In its ongoing efforts to break into the healthcare industry, Amazon (NASDAQ: AMZN) is shuttering its current telehealth service, Amazon Care. Some view this decision as a step back for Amazon's healthcare ambitions, but, according to the company, Amazon Care "isn't the right long-term solution" for its customers.
"Although our enrolled members have loved many aspects of Amazon Care, it is not a complete enough offering for the large enterprise customers we have been targeting, and wasn't going to work long-term," Amazon Health Services lead Neil Lindsay wrote in a company email to Amazon's Health Services team.
In 2019, Amazon Care was introduced to serve employees in and around Amazon's headquarters in Seattle on a test basis. Last February, the service was extended nationwide for both Amazon employees and other companies, including Whole Foods, Peloton (NASDAQ: PTON), Silicon Labs (NASDAQ: SLAB), and Hilton (NYSE: HLT).
The service will no longer be available after December 31.
According to Lindsay, the company was able to gather "extensive feedback" during Amazon Care's operation, and that feedback will be used to develop an improved version of the service.
"Our work building Amazon Care has deepened our understanding of what's needed long-term to deliver meaningful health care solutions for enterprise and individual customers," Lindsay wrote. "The health care space is ripe for reinvention, and our efforts to help improve the health care experience can have an immensely positive impact on our quality of life and health outcomes."
Employees working in Amazon Care will have the chance to move into other Amazon Health Services positions, according to Lindsay's email. Employees looking for positions outside of Amazon will also receive "support".
While Amazon is shutting down Amazon Care, there's no question that the company is still committed to expanding its health care offerings. In July, Amazon paid $3.9 billion to acquire boutique primary care provider One Medical, and the online retailer is now reportedly seeking to purchase home health service provider Signify Health (NYSE: SGFY) for as much as $8 billion.
In fact, the acquisition of One Medical, which is awaiting regulatory approval, may be one of the reasons for the end of Amazon Care. According to health tech investor Chrissy Farr with OMERS Ventures, the services of the two entities may have overlapped, and "that may have been awkward to navigate."
"It could be a signal of where Amazon plans to focus its energies," said Farr.
There has reportedly also been internal tension between Amazon and its medical staffers. A report from The Washington Postrevealed that staffers think Amazon may be more focused on growth and efficiency than on medical safety.