The expansion of the Amazon Care virtual car pilot program for employees and external employers across the country raises concerns that the e-commerce giant poses a serious threat to telemedicine service providers after a year of surprising growth in the region.
While the idea that Amazon offers nationwide virtual care has worries long-established companies, experts say Amazon Care’s current offerings and structures are not as disruptive and should not affect market giants such as Teladoc Health, Amwell, and Doctor on. Request. short term.
“I do not think we need to shake the big Teladoc and Amwell around the world in their shoes,” said Arielle Trzcinski, senior analyst at Forrester. “They have a strong position in the market.”
Amazon began testing Amazon Care as on-demand prevention, emergency, and welfare service for employees 18 months ago. Last week, a Seattle-based behemoth announced plans to make virtual healthcare benefits available to U.S. employers beginning this summer and to provide basic home care to other businesses in Washington state and Washington, DC. DC. and Baltimore in the following months.
While the scale that Amazon can bring and the impact of its entry on pricing, marketing, and access to capital in the telemedicine sector is important, analysts say, the virtual care space is enough to support many of the winners.
Despite the growing demand for COVID-19, it remains a highly penetrated market. Teladoc, the largest provider of virtual health care in the United States, plans to have 12 to 13 million visits by 2021. However, according to Cowen analysts, 850 million outpatient visits take place annually in a study of the expansion of Amazon Care in the country. ,
This stock is good for existing players who also have a significant advantage over Amazon.
It took Teladoc, for example, 19 years to expand the scope of telemedicine services and gain market share. The company in New York has thousands of clients from major healthcare systems, payers, and employers, including more than 40% of Fortune 500 companies.
Teladoc has expanded its offering to become a virtual one-stop shop for the pandemic but has exponentially accelerated its expansion plans in 2020 in the face of growing consumer demand. With the acquisition of Livongo, Livongo’s chronic care manager, valued at $ 18.5 billion last year, the provider has expanded into specialized and niche areas such as behavioral health and chronic care and is testing other neighborhoods such as virtual primary care.
According to Stephanie Davis, an analyst at SVB Leerink, Teladoc should continue to maintain its competitive advantage. While the product first hit post-news success last weekend, Teladoc stocks have risen again as Wall Street is putting an impact on the side of Amazon Care’s international exit.
“You won’t be defeated right away.
Meanwhile, Amazon Care seems to be more involved in the crisis than it is to have a wide range of broad, solid sellers, analysts say.
Small businesses like Omada, Cleo, Hinge Health, and Kaia that deal with health conditions such as diabetes, musculoskeletal system, high blood pressure, or behavioral problems often have some important clients such as take a job and compete for the price. A fight with Amazon, which sent $ 386 billion to sales last year, could be a strong prospect for growth for digital healthcare startups.
“Employers in the health department are close to the Wild West,” Davis said. Employers may buy or rely on players who are less able to afford health insurance than providers for care services.
Amazon said it and several employers are considering Amazon Care, but it does not provide details. Amazon is likely to focus on small employers looking to save money as a starting point for Amazon Care sales services, as well as company inquiries and large corporations with dedicated staff, said Michael Abrams, managing partner at Numerof & Associates.
Amazon does not disclose the current price for its health platform, but it would argue that it could save money for employers who believe their suppliers currently do not agree.
If you take a closer look at Amazon Care’s visual effects app, it doesn’t look like other service providers. Most telehealth platforms today are low-cost or low-cost and offer little downtime, although Amazon claims to offer unpaid doctors in 60 seconds or so small and eventually connected telehealth with home care in these countries. USA
It is also used as an effective care option, where patients are treated by a team of service providers tailored to each patient and tailored to their needs.
Researchers say consumers are hungry for it. Research has shown that people have more relationships with their doctors and that telemedicine providers have the confidence of building trust with service providers without sacrificing the quality of home visits.
Teladoc does the same, allowing patients to connect with a select provider and link chronic disease patients with other administrative and support staff, including connected devices, thanks to the purchase of Livongo.
However, Amazon Care offers a number of services that major retailers overlook, including Link Care. The current shared position is likely to have been facilitated by non-ergonomic work from the foundations of the building.
This could be an added benefit for Amazon when users start to think about the possibility of a short-term and long-term disability next year or when they work from home. You may be willing to pay a premium to hide your head.
Acupuncture is another thing experts say, experts say. Amazon Pharmacy, which allows customers to complete a transaction on their desktop or smartphone using the Amazon app and have medicine delivered to their home, is an option to fill out the form with Amazon Care.
This can simplify the process for existing Amazon customers by putting together prescriptions that make ordering and obtaining products of all kinds easier and provide long-term use of drugs.
Amazon Care can face similar hurdles.
“The first thing Amazon is doing to gain corporate control and complexities is the information marketing challenge,” Abrams said. “Amazon has a mountain to climb.”