Amazon (AMZN) is expanding its telehealth services, called Amazon Care, with in-person services to an additional 20 cities this year, the company announced Tuesday. Amazon stock ticked up.
XIn-person service is already available in eight cities. They include Seattle, Baltimore, Boston, Dallas, Los Angeles, and Washington, D.C., as well as Arlington, Va., and Austin, Texas.
"In 2022, we plan to bring in-person care services to more than 20 additional cities," Amazon said in a news release. "This includes major metropolitan areas like San Francisco, Miami, Chicago, and New York City."
Amazon Care launched as a pilot program in 2019 for company employees in and around its Seattle headquarters. Services became available to all Amazon employees and to other companies and their employees last year.
Amazon stock edged up 0.7% to 3,179.50, during morning trading on the stock market today.
A Growth Engine For Amazon Stock?
If Amazon can deliver more efficient health care services, the potential is enormous for fueling Amazon stock. Health care now comprises nearly a fifth of the U.S. economy.
Amazon Care starts with a smartphone app that enables customers to connect with medical professionals via chat or videoconference for a fee. The types of services include Covid-19 and flu testing, vaccinations, treatment of illnesses and injuries and preventive care at participating clinics. Services also include prescription requests and refills.
Teledoc Health (TDOC) stock, a virtual telehealth services provider, dropped 4.4% to 71.20. In addition, telemedicine company American Well (AMWL) dropped 4.5% to 4.30.
Virtual care is an increasingly crowded space, with insurers also getting in on the telehealth expansion. Other companies offering virtual care include Anthem (ANTM), UnitedHealth Group (UNH), the Aetna unit of CVS Health (CVS) and Cigna (CI).
Health Care Industry Primed For Disruption
Amazon has made many forays into the health care field over several years. This includes its $753 million acquisition of PillPack in mid-2018. PillPack is an online pharmacy, which delivers prescriptions presorted by the dose.
The health care services industry is primed for disruption. However, a big unknown is just how far and deep Amazon will venture into the market. There's also the question of how much fuel that will bring to Amazon stock.
"Amazon Care fills a critical gap in the health care system because it combines the best of virtual care with a new approach to in-person care," Amazon said.
lease follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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