I have posted previous notes considering the changes that are now occurring in the primary healthcare market including the efforts of CVS/MinuteClinic, Walgreens, and Walmart to gain market share (see, for example: Walmart Shapes Its Own Primary Care, Unbundling Strategy; The "Proximity Advantage" Enjoyed by Retail, Walk-In Clinics Over Health Systems). This is in contrast to health systems that are not keeping pace because of the lower profit margins of such practices. Meanwhile, Amazon with its Prime business unit, seems to be positioning itself as a primary care provider. Some of these ideas were covered in a recent article (see: Amazon made another bold move into healthcare that went relatively unnoticed). Below is an excerpt from it:
Amazon expanded into the Medicaid market by announcing that it will offer beneficiaries a Prime membership of $5.99 a month, a discount of 54 percent. And while that revelation last week may not have raised quite as many eyebrows as the company's blockbuster partnership with Berkshire Hathaway and JPMorgan Chase it holds the potential to have a major impact sooner. "What Amazon is doing, they are trying to position themselves for a different market," ....They are disrupting healthcare at all levels. They're trying to be competitive with Walmart."....The Medicaid population isn't courted by providers because the lower reimbursement rates threaten their bottom lines. Insurers right now appear more interested in the Medicare Advantage market, though specialized government payers such as Centene are making the Medicaid segment work....
Amazon has been studying the healthcare market for at least a year...and began a competitive focus on Walmart last year with the start of Amazon Cash, which is a way to add money to an account to make quick ordering easier -- even for people who may not have a bank account, credit or debit cards. Taking that a step forward,...[a spokesperson] said she envisions Medicaid consumers talking to a physician via their smartphone for a $5, or even free, telehealth visit. "You can talk to a doctor with one click on Amazon Prime, who can tell you whether you need the emergency room," ...[an analyst said]. This helps keep beneficiaries from going to the emergency room for care, but may also cut into PCP services.....Amazon could also be considering a move into primary care.
To summarize, Prime has lowered its monthly membership for Medicaid subscribers and is now offering Amazon Cash membership to Prime members as a payment substitute for those lacking credit/debit cards or checking accounts. This will allow them to purchase items on Amazon and also, potentially, to take advantage of virtual care health (i.e., telemedicine) visits at low cost. Now that Amazon also controls retail store space in the form of Whole Foods stores, it could also potentially carve out drop-in clinic spaces like MinuteClinics in these stores. It will be fascinating to watch the next healthcare moves by Amazon (see: Amazon overtakes Google as the world's most valuable brand). The now huge company will surely pursue this line of business because healthcare is such a large proportion of the GDP and lower income and rural populations are not always well served by the current system.