Amazon Restructures Healthcare Business
Amazon has embarked on a major restructuring of its healthcare business, unveiling a new organisation built around six “pillars” designed to streamline operations and accelerate innovation. This move comes after a period of significant executive turnover, with several top health leaders—including the chief medical officer of Amazon Pharmacy and the CEO of One Medical—departing the company in recent months. Despite these changes, Amazon has stated that it will not be making widespread layoffs as part of this restructuring, instead focusing on simplifying its structure to improve patient experience and drive growth.
Over the past decade, Amazon has steadily expanded its presence in the healthcare sector through a series of high-profile acquisitions and initiatives. In 2018, Amazon acquired PillPack, an online pharmacy startup, for approximately $750 million, marking its entry into prescription medication delivery. This was followed by the launch of Amazon Pharmacy in 2020, which leveraged the company’s logistics expertise to offer fast, convenient medication delivery to consumers. In 2023, Amazon further deepened its commitment to healthcare by acquiring One Medical for $3.9 billion, gaining access to a network of primary care clinics and a membership-based care model. Additional initiatives have included piloting telehealth services, integrating AI tools for administrative and clinical tasks, and partnering with major health systems to expand access to care.
The rationale behind the current restructuring is clear: Amazon aims to address the complexity and fragmentation that have long plagued the healthcare industry. By consolidating its healthcare offerings into six focused units—including clinical care delivery, operations and performance, strategic growth, technology and marketing, compliance, and pharmacy services—Amazon hopes to create a more cohesive and efficient organisation. This approach is intended to speed up decision-making, foster innovation, and ultimately deliver a better experience for both patients and enterprise customers.
In my view, these changes are likely to accelerate Amazon’s progress in healthcare. The new structure provides clearer lines of responsibility, enabling faster execution and better alignment with customer needs.For pharmaceutical and health care brands, this could signal more opportunities for collaboration and innovation, as Amazon continues to refine its healthcare ecosystem and expand its reach. However, the healthcare sector remains highly regulated and competitive, with narrow profit margins and complex stakeholder relationships. Amazon’s ability to navigate these challenges while maintaining its focus on customer experience will be critical to its long-term success. This is not an easy journey for Amazon, but the rewards are meteoric.
