Amazon Overhauls Healthcare Business To Streamline Structure As Exec Officers Leave

Benzinga
2025.06.16 14:18
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Amazon Inc. is restructuring its healthcare business into six new units to streamline services following recent executive departures. The changes aim to simplify operations and enhance patient experience, as stated by Neil Lindsay, senior vice president of Health Services. Despite the shake-up, Amazon clarified that there will be no widespread layoffs. The company has faced challenges in the competitive healthcare market but reported a doubling of its pharmacy customer base in the past year. AMZN stock rose 0.62% to $213.46.

Tech giant Amazon Inc AMZN has reportedly revamped its healthcare business to simplify its services and recover from a handful of recent executive departures.

According to a CNBC report, Amazon is restructuring its health business into six new units, including:

  • One Medical Clinical Care Delivery, One Medical Clinical Operations and Performance, AHS Store, Tech and Marketing, AHS Compliance, and AHS Pharmacy Services.

Amazon has hired several longtime company leaders and promoted some One Medical executives to lead the changes.

Neil Lindsay, Amazon’s senior vice president of Health Services, told CNBC that the company had been working on this overhaul for several months.

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Amazon also clarified that the restructuring has not led to widespread layoffs.

This shake-up comes after a series of executive departures in its health business.

Dr. Vin Gupta, who had been Amazon Pharmacy’s chief medical officer since 2020, left in February. One Medical CEO, Trent Green, stepped down in April.

More recently, Aaron Martin, Amazon’s vice president of health care, announced his plans to leave, and Dr. Sunita Mishra, the company’s chief medical officer, left the company in May.

Martin and Mishra’s departures had not been publicly disclosed before Amazon said it doesn’t plan to appoint a new CEO for One Medical after Green’s departure.

“Our leadership team has been focused on simplifying our structure to move faster and continue to innovate effectively,” Lindsay told CNBC. “One of the problems we’re trying to solve is the fragmented experience for patients and customers that’s common in healthcare.”

Amazon has been involved in healthcare for nearly a decade. It bought PillPack, an online pharmacy, for about $750 million. Two years later, it launched its Amazon Pharmacy. It then bought One Medical for $3.9 billion in 2023.

The company has had challenges, including closing its telehealth service, Amazon Care, in 2022. The healthcare market is also highly competitive, with slim margins, particularly in primary care.

CNBC noted that in January of 2024, Amazon said its pharmacy business “doubled the number of customers” it served in the past year, though specific numbers were not disclosed.

The company is opening pharmacies in 20 new cities this year, and about 45% of U.S. customers will be eligible for same-day medication delivery.

Price Action: AMZN stock is up 0.62% at $213.46 at the last check on Monday.

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