Amazon Disrupts Healthcare Market with Affordable Prime Member Treatments
1min read Amazon has recently made waves by introducing a fixed-rate healthcare service for its Prime members, specifically targeting treatments for male pattern baldness, anti-aging, motion sickness prevention, and erectile dysfunction. The new offering allows consumers to bypass the time-consuming processes of booking and waiting for doctor appointments. Clients have access to confidential clinical consultations round the clock without the fear of receiving unexpected large medical bills.
The announcement on Thursday had an immediate impact on the stock market, with shares of the telehealth firm Hims & Hers experiencing an intraday drop exceeding 18%, signaling what could be one of the company's largest single-day declines. Amazon's move is based on the capabilities of One Medical, an online health platform it acquired for $3.9 billion in July 2022. Through One Medical, video consultations for common ailments are available for a fee of $49 per session.
The new service is positioned to capitalize on cost advantages where traditional healthcare settings fall short, especially for specific treatments. For instance, Amazon offers anti-aging skin care treatments for $10 per month and hair growth solutions for men at $19 per month. Consulting a doctor regarding eyelashes costs $43 per month, while motion sickness prevention is charged per instance at $2. These are available both as subscriptions or one-off services. Buyers pay the subscription and Prime membership fees, along with any medication costs, avoiding shockingly high bills.
Amazon notes significant cost savings on medication, with a 90-day supply of medication for ED costing $26.6, representing a 92% savings compared to other popular subscription services. This service is bolstered by Amazon's proprietary pharmacy and logistics capabilities, ensuring quick delivery of prescription drugs, sometimes within hours, while prioritizing patient privacy.
