For nearly a decade, Amazon has pursued a foothold in the complex U.S. health-care market through acquisitions, partnerships, and key hires. Now, following several executive departures, the company is restructuring its health division to create a simpler, more agile organization.
New Six-Unit Structure
Amazon Health Services will be divided into six focused groups, or “pillars,” overseen by experienced Amazon leaders and executives from its One Medical acquisition. Neil Lindsay, senior vice president of Amazon Health Services, said the restructuring has been in progress for months. The goal is to reduce fragmentation and speed up innovation while addressing the “fragmented experience” common in health care.
The six pillars include clinical care delivery, operations, strategic growth, store and tech marketing, compliance, and pharmacy services.
Several senior health leaders have left recently, including Dr. Vin Gupta (former chief medical officer of Amazon Pharmacy), Trent Green (former CEO of One Medical), Aaron Martin (vice president of health care), and Dr. Sunita Mishra (chief medical officer). Amazon does not plan to appoint a new One Medical CEO at this time. Martin plans to stay on temporarily to assist with the transition.
Amazon’s Health-Care Journey So Far
Amazon’s health-care push began with its $750 million acquisition of online pharmacy PillPack in 2018, followed by the launch of Amazon Pharmacy. The $3.9 billion acquisition of One Medical in 2023 added a network of physical clinics and a substantial membership base.
The company faced setbacks such as shutting down Amazon Care in 2022 and ending the Haven joint venture with Berkshire Hathaway and JPMorgan Chase in 2021.
The health-care sector is complex, with slim margins and fierce competition. New startups, including General Medicine founded by former PillPack executives, are challenging Amazon’s position. Lindsay describes the leadership changes as part of natural evolution in a fast-growing organization.
Amazon Pharmacy doubled its customer base last year and plans to open pharmacies in 20 new cities this year. One Medical continues expanding offices in states like New Jersey, New York, and Ohio. About 45% of U.S. customers will soon be eligible for same-day medication delivery.
What The Author Thinks
Amazon’s move to reorganize and simplify its health-care division is a necessary step given the sector’s complexity and the company’s ambitious goals. Streamlining operations into focused pillars could improve coordination and innovation speed, addressing the fragmented nature of health care. However, retaining and attracting top talent will be critical, especially amid recent executive departures. Amazon’s broad vision is promising, but execution in a tough market will require patience and strategic agility.
Featured image credit: Stas_kamensk via GoodFon
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