3 Takeaways from Amazon Health Services Reorganization – American Hospital Association

Report on Amazon Health Services Reorganization and Its Alignment with Sustainable Development Goals (SDGs)

Amazon, despite its strong business acumen and technological expertise, has yet to fully realize its objectives within the health care sector. Recent developments indicate a significant restructuring of Amazon Health Services (AHS), aimed at enhancing operational efficiency and expanding its healthcare footprint. This report analyzes the restructuring, its implications, and the alignment with the United Nations Sustainable Development Goals (SDGs), particularly those related to good health and well-being (SDG 3), industry innovation and infrastructure (SDG 9), and reduced inequalities (SDG 10).

Overview of the Restructuring

Amazon Health Services has reorganized its operations into six distinct units to streamline its structure and accelerate growth. According to Neil Lindsay, Senior Vice President of AHS, the reorganization aims to create a less fragmented and more cohesive experience for patients and customers. The restructuring also involves reducing management layers and promoting experienced leaders within the company.

Key Leadership and Structural Changes

• Executives from One Medical, acquired by Amazon for $3.9 billion in 2023, now lead three of the six new business units.
• Several high-profile executive departures preceded the restructuring, including:
• Vin Gupta, M.D., former Chief Medical Officer of Amazon’s pharmacy division.
• Trent Green, former CEO of One Medical.
• Aaron Martin, Vice President of Health Care at Amazon.
• Sunita Mishra, M.D., former Chief Medical Officer of Amazon.
• Founders of PillPack, TJ Parker and Elliot Cohen, who left Amazon in 2022, have launched a competing healthcare marketplace, General Medicine, with advisory input from Sunita Mishra.

Implications for Sustainable Development Goals

SDG 3: Good Health and Well-being

The restructuring reflects Amazon’s commitment to improving access to healthcare services and medications, which supports SDG 3 by promoting healthy lives and well-being for all ages. Initiatives such as expanding pharmacies, introducing free drone delivery of medications, and partnering with pharmaceutical companies to accept manufacturers’ coupons aim to enhance affordability and accessibility of essential medicines.

SDG 9: Industry, Innovation, and Infrastructure

Amazon’s investment in innovative delivery methods and digital health platforms exemplifies progress toward building resilient infrastructure and fostering innovation. The partnership between Amazon Pharmacy and Serve You Rx to provide home-delivery services for maintenance medications demonstrates a commitment to leveraging technology to improve healthcare infrastructure.

SDG 10: Reduced Inequalities

By simplifying healthcare access and reducing fragmentation, Amazon’s restructuring efforts have the potential to reduce inequalities in healthcare delivery, ensuring that underserved populations receive timely and affordable care.

Key Takeaways from the Restructuring

1. Pharmacy Remains a Central Growth Focus

   Amazon continues to prioritize pharmacy services as a primary growth area. Efforts include:

   • Opening additional pharmacies in U.S. cities.
   • Launching free drone delivery for medications.
   • Forming agreements with pharmaceutical manufacturers to accept coupons.
   • Collaborating with Serve You Rx for home delivery of maintenance medications.

2. Incremental Progress Expected

   Immediate transformative results are unlikely. According to Neil Lindsay, incremental improvements in access to convenient and affordable medications could lead to significant savings in time, money, and lives. However, financial impacts remain difficult to quantify externally due to Amazon’s non-disclosure of health business financials.

3. Leadership and Talent Development Will Be Critical

   Despite recent executive departures, AHS retains a strong team of experienced healthcare leaders. Their ability to innovate and enhance care offerings will be crucial in leveraging Amazon’s established consumer relationships and advancing the company’s healthcare objectives.

Conclusion

The reorganization of Amazon Health Services represents a strategic effort to align with global health priorities and sustainable development. By focusing on improved healthcare access, innovation, and leadership development, Amazon aims to contribute to the achievement of the Sustainable Development Goals, particularly SDG 3, SDG 9, and SDG 10. Ongoing monitoring of the restructuring’s outcomes will be essential to assess its impact on healthcare delivery and equity.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 3: Good Health and Well-being
   • The article discusses Amazon Health Services’ efforts to improve healthcare delivery, access to medications, and patient experience, directly relating to ensuring healthy lives and promoting well-being.
2. SDG 9: Industry, Innovation and Infrastructure
   • Amazon’s use of technology, drone delivery, and restructuring to innovate healthcare services aligns with building resilient infrastructure and fostering innovation.
3. SDG 8: Decent Work and Economic Growth
   • The restructuring and leadership changes within Amazon Health Services affect employment and organizational growth, linking to promoting sustained economic growth and productive employment.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 3 Targets
   • Target 3.8: Achieve universal health coverage, including access to quality essential health-care services and affordable essential medicines and vaccines.
   • Target 3.b: Support the research and development of vaccines and medicines for communicable and non-communicable diseases.
2. SDG 9 Targets
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors, including healthcare.
   • Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet.
3. SDG 8 Targets
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators related to SDG 3
   • Proportion of population with access to affordable essential medicines (implied by Amazon Pharmacy’s expansion and medication delivery services).
   • Coverage of essential health services and patient experience improvements (implied by the goal to create a less fragmented experience for patients).
2. Indicators related to SDG 9
   • Number of technological innovations adopted in healthcare delivery (implied by drone delivery and digital pharmacy services).
   • Access to digital health infrastructure and services (implied by Amazon’s restructuring to improve service delivery).
3. Indicators related to SDG 8
   • Employment rates and leadership retention within Amazon Health Services (implied by discussion of executive departures and promotion of tenured leaders).
   • Growth in economic productivity of healthcare business units (implied by statements on strong growth and expansion).

4. Table: SDGs, Targets and Indicators

Source: aha.org