Amazon Disrupts Healthcare with Bold Prime Member Medical Subscriptions
1min read Amazon has initiated a groundbreaking expansion of its healthcare services by offering fixed-rate medical subscriptions for Prime members, addressing conditions like male pattern baldness, erectile dysfunction (ED), motion sickness, eyelash growth, and more. This strategic move underlines Amazon's ambitious entry into the telemedicine and digital health sectors, promising extensive consultations and potential cost efficiencies for users.
In light of Amazon's announcement, shares of telehealth company Hims & Hers experienced a significant decline, plummeting by over 18% intraday. This downturn might signal one of the company’s largest single-day percentage drops, reflecting investor concerns over Amazon’s competitive pricing and expansive service offerings.
Amazon's new service model focuses on eliminating traditional barriers such as appointment scheduling delays and high medical bills. Users benefit from round-the-clock confidential clinical consultations, along with competitive pricing on medications via the Prime Rx program. This initiative builds upon Amazon's 2022 acquisition of One Medical, a digital health platform acquired for $3.9 billion. Services through One Medical include video consultations priced at $49 per session, catering to common ailments like conjunctivitis and sinus infections.
Despite Amazon's previous challenges, such as the short-lived Amazon Care, the company's continued investment in healthcare services underscores its ongoing commitment to disrupting the industry. The strategic closure of their "family fertility tracking devices" team hints at a focused redirection of resources toward more immediate healthcare opportunities.
Price competitiveness remains Amazon's critical strength. While digital health services cannot entirely replace in-person medical assessments, their cost-effectiveness can compensate for the lack of physical examination. For instance, monthly subscriptions for anti-aging treatments are priced at $10, hair growth consultations at $19, and eyelash growth services at $43. Motion sickness prevention consultations start at $2 per session, significantly lower than traditional services.
Customers need only pay subscription fees, Prime membership dues, and any applicable medical expenses, avoiding unexpected bills. For ED treatment, a 90-day medication supply costs $26.6, offering a 92% savings compared to other subscription options, further cementing Amazon's competitive advantage.
With integrated in-house pharmacy and logistics services, Amazon facilitates expedited medication delivery within hours, ensuring enhanced privacy protections for patients seeking discreet treatment. This seamless integration of healthcare services aims to revolutionize consumer access and affordability in medical care.