Amazon Reorganizes Health Business into Six Units Amid Growing Competition in Healthcare Sector

Amazon has reportedly reorganized its health business into six units as part of an effort to simplify its structure and improve innovation, according to CNBC. Senior Vice President of Amazon Health Services Neil Lindsay stated that the move is aimed at creating a more streamlined experience for patients and customers.

The restructuring, which does not involve broad layoffs, will see some units led by longtime Amazon leaders while others will be led by executives from One Medical, Amazon's primary care chain. The new divisions include One Medical Clinical Care Delivery; One Medical Clinical Operations and Performance; AHS Strategic Growth and Network Development; AHS Store, Tech, and Marketing; AHS Compliance, and AHS Pharmacy Services.

Lindsay attributed the reorganization to the natural evolution of the business, citing a "no shortage of depth of talent" within the organization. The changes follow the departure of some health leaders, including the chief medical officer of Amazon Pharmacy, the CEO of One Medical, and the chief medical officer of Amazon.

Amazon's strategy in the healthcare sector involves competing with rival Walmart for not only retail dollars but also other infrastructure such as cloud services and daily living services. By integrating services like virtual care and chronic condition management through strategic partnerships with companies like Teladoc and mental health providers, Amazon seeks to redefine healthcare access and challenge Walmart's established position in the industry.

In recent months, Amazon has expanded its healthcare offerings by adding new telehealth services and extending existing ones such as the Amazon One Medical Pay-per-visit service. The company aims to capitalize on the growing demand for online healthcare services and establish itself as a major player in the sector.