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Amazon’s Big Move in Healthcare

Amazon’s virtual doctor service, Amazon Clinic, is now available in all 50 states the Verge reports. This is a huge win for a company under FTC investigation.

Amazon Clinic is a network of independent telehealth providers brought together in a single Amazon app. One major issue for Amazon Clinic is that it does not accept insurance, making the average doctor visit cost $75. This can be cheaper than an in-doctor visit without insurance.

Amazon Clinic is in competition with already established Telehealth services such as Teladoc, GoodRx, and those run by insurance companies. Patients can rely on message only services for $35 a session, though this is only available in 34 states for now due to regulations.

Data privacy is an important issue for the healthcare sector, including compliance with HIPPA laws. Amazon and fellow Big Tech firms are already under scrutiny for their business practices. Venturing into the Healthcare sector and its onerous regulations could yield profits to Amazon, but at the risk of drawing the ire of the FTC which is already building cases against the company.

Amazon has continuously disrupted industries, using its superior supply chain and size to either purchase or bankrupt the competition. Whether it can compete with services covered by insurance remains to be seen.

 

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