Amazon, Walmart and "Healthcare as a Service"

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Last week, Amazon.com announced it's Amazon Care service, initially supporting its employees in the Seattle, WA area.  

  • The Amazon Care mobile application offers access to virtual and in-person healthcare services which are provided by Oasis Medical Group, a third-party service provider.

  • Services include: 1) Video Care: which provides virtual visits with a clinicians for advice, answers, diagnoses, treatment, or referrals, 2) Care Chat: a text chat service to obtain advice, 3) Mobile Care: to schedule in-person appointments to collect lab samples, perform onsite testing (such as strep tests), administer common vaccines, etc. and 4) Care Courier: to prescribe prescription medications and provide two-hour delivery.

  • Notes: 1) currently, there is no cost to enroll in Amazon Care. 2) Amazon's other healthcare initiatives include its Pillpack on-line pharmacy and Haven, a partnership with Berkshire Hathaway and JPMorgan.


Separately, Walmart opened a second freestanding health clinic in Georgia adjacent to one of its supercenters. Its website said, 

  • "We’re very pleased with the response to Walmart Health in Dallas, GA, where the practitioners are servicing a full schedule of patients with great feedback from the patients and community. Clinicians appreciate the integrated care model and the ability to address the diverse health needs of this community, and patients are excited to access healthcare so conveniently and affordably.

  • "We selected Calhoun as a follow-up Dallas to help address the community’s health and wellness needs. We think we can make an impactful difference in affordability, convenience and, most importantly, accessibility for the community.

  • "The Walmart Health prototypes we are opening will test the optimal layout, mix, and size of the center. We are taking a measured approach that will factor in the unique needs of the communities we serve, and we look forward to continuing to learn how best to deliver the integrated quality care customers want and deserve.  We plan to expand Walmart Health into other communities we serve, focusing on Georgia where we will be opening a handful of sites in 2020."

OUR TAKE

  • "Healthcare as a service" will change the industry in ways similar to the introduction of on-line services in other markets (retail, travel, banking, etc.). Patients/customers should benefit, legacy health care organizations and clinicians will need to adapt. 

  • Changes in the industry will include the entry of new playersnew pricing modelsnew delivery approaches and services that are more data driven and virtual.

  • Regarding Amazon: The firm will leverage its expertise in on-line services and logistics as it expands its reach into health care. The  Amazon Care offering will likely expand over time - extending beyond its employees to include the firm's broader customer base.

  • Regarding Walmart: It’s healthcare efforts will leverage the firm's physical presence in many communities, as it seeks to provide better price transparency relative to traditional clinics and hospitals.

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