Could Amazon be headed for big losses for its healthcare businesses?
A spokesperson for the tech giant told Becker's that Amazon Health Services is making "strong progress" to "drive growth, to build a sustainable cost structure, and most importantly, make quality healthcare better, easier, more accessible, and more transparent for patients."
The spokesperson was responding to leaked draft documents from December, first reported July 30 by Business Insider, that the company's healthcare businesses were set to lose more than $1 billion in 2024 after losing nearly $1.3 billion in 2023.
“These figures are incorrect, and do not accurately reflect the financial performance of Amazon Health Services," the spokesperson said. "The 2023 figures are based on incomplete draft documents that did not and do not reflect our actual 2023 performance. Amazon Health Services teams have not yet finalized 2024 year-end expectations, but those figures are also incorrect."
Amazon has continued its push into healthcare that started with the acquisition of online pharmacy PillPack in 2018 for nearly $1 billion and primary care company One Medical in 2023 for $3.9 billion. Amazon's pharmacy business has expanded with same-delivery prescription delivery now in eight cities and a partnership with Eli Lilly and Co. One Medical has added clinics and markets since the deal. Amazon laid off a few hundred healthcare employees in February.
The company reports quarterly earnings Aug. 1.