Amazon Folds Telehealth Marketplace Into One Medical

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Dive Brief:

• Amazon is folding its telehealth marketplace into primary care chain One Medical, unifying its healthcare delivery services under a single brand — and placing One Medical in front of the eyes of engaged telehealth customers, potentially creating a new source of subscriptions.
• Amazon is rebranding the marketplace, previously called Amazon Clinic, to Amazon One Medical Pay-Per-Visit. The service, which automatically connects patients to a provider via virtual video or messaging for a flat fee, is also getting more affordable.
• Messaging visits are $29, down from around $35, and video visits are $49, down from $75.

Dive Insight:

Amazon launched Amazon Clinic, a pay-per-visit service connecting patients with a range of telehealth vendors, in late 2022 before taking the service nationwide the next summer. The marketplace links patients to fast care for 30 common conditions, like pink eye or the flu.

It’s one of a range of healthcare offerings spearheading the $575 billion retailer’s foray into healthcare. However, lackluster consumer and client uptake has dogged Amazon’s entrance into the space, and caused some of its ventures to close.

Now, Amazon is folding the telehealth venture into One Medical, its flagship healthcare offering. Amazon purchased the medical network for $3.9 billion last year, and has since leaned on One Medical to integrate the retail giant’s healthcare ambitions with its core e-commerce business.

Late last year, Amazon discounted the cost of a One Medical membership for users of its Prime subscription service.

Amazon has stressed One Medical’s telehealth offerings in peddling its primary care to Prime members. The company’s physical clinics are concentrated in major cities, so many of Amazon’s more than 200 million Prime members would only have access to One Medical’s telehealth capabilities if they sign up.

Weaving pay-per-visit telehealth into One Medical could help Amazon flag the primary care network for more potential consumers. That’s because existing Amazon Clinic customers now have to access their profile and treatment plans by logging into One Medical, according to Amazon’s release.

The reorganization also creates a clearer pipeline from a standalone telehealth visit to followup physical care at One Medical, if Amazon cares to use it. The Amazon executive managing the telehealth marketplace said in October that it could soon make deals with physical providers to provide followup care that couldn’t be done virtually.

“Amazon One Medical Pay-per-visit providers don’t currently provide referrals to specific primary care providers or specialists, but we are excited for this evolution and the future possibilities,” an Amazon spokesperson said.

“We look forward to making it even easier for customers to select the service that works best for their needs, and to transition seamlessly to a One Medical membership … if they so desire,” they added.

Amazon does not disclosure the number of pay-per-visit telehealth users. The marketplace has also faced concerns about data privacy, as users waive certain privacy rights to use the service.

Along with Amazon Clinic and One Medical, Amazon also operates a chronic condition management portal and an online pharmacy, called Amazon Pharmacy. The e-commerce behemoth has tried to make Amazon Pharmacy more tempting for Prime members through generics subscriptions, including for seniors on Medicare, and a Prime prescriptions savings benefit.