Amazon reorganizes its health-care business after executive departures

For a better part of a decade, Amazon has tried to make its way on the American health care market, through billions of dollars in acquisitions, renowned hires and highly publicized partnerships. It was sometimes a SLOG, and the long -term strategy of the company was not always clear.

After a series of executive departures, Amazon restructures now its health activity, telling CNBC that Amazon health services will be divided into six new units, in order to create a simpler structure.

As part of the effort, the company has exploited a number of long -time Amazon managers and has raised certain medical executives to supervise the divisions. Neil Lindsay, vice-president of Amazon health services, told CNBC in an interview that the company has been working on the overhaul for several months.

“Our management team focused on simplifying our structure to go faster and continuing to innovate effectively,” said Lindsay in a video chat. “One of the problems we are trying to solve is the fragmented experience for patients and customers who are common in health care.”

Amazon said that he had not carried out vast layoffs in the context of changes.

The reorganization comes after Amazon has lost several senior health leaders in recent months. Dr Vin Guptawho joined in 2020 and was a chief doctor of Amazon Pharmacy, who left in February, followed by Trent Greenof which on the last day as CEO of the Amazon One Medical primary care chain was in April.

Aaron Martin, vice-president of health care in Amazon, announced internally last month that he planned to leave his role. Dr. Sunita Mishra, a chief of Amazon, also left in May.

The departures of Mishra and Martin were not reported before and did not respond to requests for comments. Amazon does not intend to appoint a new CEO of a medical after the departure of Green.

Martin, who lives in Nashville, Tennessee, said in a service note that he would remain on Amazon “for a while” to help the transition.

“I then intend to take a little time this summer and spend time with my wife and children, finally a cover group in Nashville, then maybe doing something new,” Martin wrote in Memo, who was shared with CNBC.

Although providers and others in health care with its cloud -based technology, the first large splash of Amazon came directly to the market, for a long time in 2018 with the acquisition of the acquisition of the online pharmacy Pound For around $ 750 million. Two years later, he launched his own offer called Amazon Pharmacy.

The company then bought a medical for $ 3.9 billion In 2023, among its largest acquisitions of all time, giving Amazon access to a chain of primary brick and mortar care clinics and a robust adhesion base.

There have been major setbacks. Business closed his TV serviceAmazon Care, in 2022. It came a year after Disbander has beenthe joint health care company between Amazon, Berkshire Hathaway And JPMorgan Chase. The announcement of Haven in 2018 sent shock waves in the medical world, lowering the actions of health care companies on fears of how the combined muscle of leaders in technology and finance could eliminate the costs of the system.

In the areas where Amazon continues to operate, competition is fierce and, in the case of primary care, the margins are very thin.

Pillpack Founders TJ Parker and Elliot Cohen, who Amazon left In 2022, recently launched A new health care market called General Medicine that will compete with Amazon. Mishra confirmed to New Stat that she advised the nascent startup. Amazon refused to say if Mishra’s involvement with general medicine was linked to his departure.

Lindsay characterized recent departures as part of the natural evolution of Amazon health activities. He added that there is no “shortage of talent depth” within his organization.

“We are a rapidly evolving organization because the opportunity is so great,” said Lindsay.

As part of its new structure, Amazon Health Services will focus on the six groups or what the company calls “pillars”.

• A medical care of clinical care, led by Dr. Andrew Diamond
• An operation and medical clinical performance, led by Suzanne Hansen
• Ahs GROPPRIMATION Strategic and the development of the network, led by John Singerling
• Ahs Store, Tech and Marketing, led by Prakash Bulusu
• Ahs Compliance, led by Kim Otte
• Ahs Pharmacy Services, led by John Love

Amazon refused to share financial figures for its health activities, but Lindsay said that he saw “very strong growth” in the offers.

A medical person became a public in 2020, and he still lost money when he was bought by Amazon. At the end of 2022 in its last quarter as an autonomous entity, it reported A net loss of $ 101.1 million on turnover of $ 272.4 million.

Since he joined Amazon, a medical person has worked to open new offices in states such as New Jersey, New York and Ohio.

Amazon said in January 2024 that his pharmacy company “doubled the number of customers” that he served in the past year, although he did not share specific figures. The company opens pharmacies in 20 new cities This year, and around 45% of American customers will be eligible for the delivery of drugs the same day.

“If we can facilitate something a little easier for many people, we will save them a lot of time, a lot of money and lives,” said Lindsay. “And if we get these changes over time, it will look like a reinvention.”

WATCH: Amazon Pharmacy VP: Try to facilitate drugs for patients