In a strategic move to broaden its footprint in the healthcare sector, Amazon (NASDAQ:AMZN) has announced an expansion into primary care services. This initiative is being offered through One Medical, Amazon's healthcare arm, and is available to Prime members for a monthly fee of $9.
The membership includes unlimited virtual care across the nation and an option for same-day or next-day in-person appointments at One Medical offices. These appointments can be covered either by insurance or out-of-pocket payments. In an effort to make healthcare more accessible, the annual fee for Prime members has been reduced from the standard rate to $99.
Amazon's venture into primary care follows its $3.9 billion acquisition of One Medical and forms part of the company's broader healthcare strategy. This comprehensive approach also encompasses Amazon Pharmacy and Amazon Clinic.
Analysts from D.A. Davidson predict that these healthcare initiatives could potentially contribute an additional 1% of revenue growth for Amazon by 2026.
This move by Amazon comes as other large retailers, such as Costco (NASDAQ:COST) and Walmart (NYSE:WMT), are also making strides into the primary care sector. Costco offers its members virtual primary care visits at a cost of $29, while Walmart has been establishing Walmart Health centers within its Supercenters.
InvestingPro Insights
Amazon's strategic move into the healthcare sector comes at a time when the company is performing remarkably well. According to InvestingPro data, Amazon's market cap is a whopping 1470.0B USD, and it has seen a revenue growth of 10.32% in the last twelve months as of Q3 2023. This growth trend is expected to continue with a quarterly revenue growth of 12.57% forecasted for Q3 2023.
InvestingPro Tips offer some valuable insights into Amazon's financial health and future prospects. Firstly, Amazon's net income is expected to grow this year, a positive sign for potential investors. Secondly, 23 analysts have revised their earnings upwards for the upcoming period, indicating strong confidence in the company's performance.
Amazon's expansion into primary care services, as part of its broader healthcare strategy, is a testament to its position as a prominent player in the broadline retail industry. With additional InvestingPro tips and data available, investors can gain a comprehensive understanding of Amazon's performance and potential.
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