the health strategist
multidisciplinary institute
Joaquim Cardoso MSc
Chief Research & Strategy Officer (CRSO),
Chief Editor and Senior Advisor
August 24, 2023
What is the message?
Amazon Clinic is introducing a novel approach to healthcare by providing transparent and upfront pricing for medical services.
- By partnering with digital health startups, Amazon aims to offer patients the ability to choose medical providers based on factors such as cost and speed.
- This approach contrasts with the traditional opaque billing system in healthcare.
The partner startups behind Amazon Clinic are Hello Alpha, Curai Health, Wheel, and SteadyMD.
- These startups offer services ranging from asynchronous care (non-real-time communication) to real-time video visits for various medical conditions.
- The pricing varies based on the condition and service level, with message-based visits generally ranging from $30 to $45 and video visits from $74 to $95.
However, while the initiative strives to bring transparency to healthcare costs, its impact is limited given the massive scale of the overall healthcare industry.
One page summary
Amazon Clinic, a healthcare initiative by Amazon, is aiming to bring transparency to healthcare pricing by offering upfront pricing and wait times for medical services.
Launched in November 2022, Amazon Clinic partners with four digital health startups to provide message-based and video appointments for various medical conditions, allowing customers to choose providers based on cost, speed, and other factors.
The platform initially offered services in 32 states and has expanded to all 50 states in the US.
The concept of Amazon Clinic revolves around displaying prices and wait times for medical services, a departure from the opaque nature of traditional healthcare billing.
Patients can choose between different options provided by the partner startups, giving them the ability to prioritize their preferences.
However, the scope of the initiative is limited to medical consultations and doesn’t include the costs of medications or tests that might be prescribed.
The partner startups behind Amazon Clinic are Hello Alpha, Curai Health, Wheel, and SteadyMD.
These startups offer services ranging from asynchronous care (non-real-time communication) to real-time video visits for various medical conditions.
The pricing varies based on the condition and service level, with message-based visits generally ranging from $30 to $45 and video visits from $74 to $95.
While Amazon’s efforts to bring transparency to healthcare pricing are notable, the initiative represents a small portion of the overall healthcare spending in the US, which amounts to around $4.3 trillion annually.
Additionally, the initiative only covers a portion of the healthcare process, as it doesn’t account for medication costs or testing expenses.
Patients are currently required to pay for services out of pocket, without the option to use insurance.
Amazon’s history in the healthcare sector includes various projects such as the acquisition of PillPack and the creation of Amazon Care, which initially offered virtual care for employees.
The company’s approach with Amazon Clinic differs from its previous attempts, as it partners with external startups rather than directly providing medical services.
The success of Amazon Clinic depends on various factors:
- its ability to address regulatory complexities,
- potential integration with other Amazon healthcare entities, and
- the willingness of patients to engage in transparent pricing for healthcare services.
While the initiative could potentially drive price competition and encourage consumer awareness of healthcare costs, its impact on the broader healthcare landscape remains to be seen.
Source: This is a One Page Summary of the article “Amazon’s Radical Plan For Healthcare: À La Carte Pricing”, published by Forbes!
