Amazon is launching prescription drug kiosks in some doctor’s offices in Los Angeles, the company announced Wednesday, in a move that could disrupt brick-and-mortar pharmacy businesses.
The kiosks are operated by Amazon Pharmacy and work similar to a vending machine, dispensing prescriptions for patients “within minutes” of their doctor’s visit, the company said.
Each machine can store hundreds of prescriptions, such as antibiotics, inhalers and blood pressure treatments, with inventory tailored to specific locations.
“We know that when patients have to make an extra trip to the pharmacy after seeing their doctor, many prescriptions are never filled,” said Hannah McClellan, vice president of operations for Amazon Pharmacy. “By bringing pharmacy directly to the point of care, we are removing a critical barrier and helping patients start their treatment when it matters most – right away.”
The company deploys its prescription kiosks as pharmacy chains, including Rite Aid, CVS And Walgreenshave struggled with falling drug margins. They also face growing competition for sales of higher-margin items like candy and paper towels from players such as Amazon and Walmart.
Rite Aid last week closed all of its remaining stores after more than 60 years in business, while Walgreens and CVS have also closed locations in recent years.
Amazon has worked for years to push deeper into the multi-dollar U.S. health care industry, which is notoriously complex and inefficient.
In 2018, the company acquired an online pharmacy for around $750 million and launched its own offering two years later called Amazon Pharmacy. It then purchased primary care clinic One Medical in 2022 for $3.9 billion, the third acquisition in its history. Amazon also experimented with its own telehealth service before shutting it down in 2022.
Earlier this year, Amazon restructured its healthcare business into six units “to move faster and continue to innovate,” following a handful of top healthcare executives, CNBC previously reported.
Amazon will begin rolling out the kiosks at One Medical Clinics in Downtown Los Angeles, West LA, Beverly Hills, Long Beach and West Hollywood. The company said it plans to add more medical offices and other locations “soon thereafter.”
“Over time, we see real potential for this technology to expand to other environments – anywhere rapid access to medications can make a difference,” McClellan said in an email.
Amazon Pharmacy kiosk.
Courtesy: Amazon
Before patients can use the kiosk, their provider must first send a prescription to Amazon Pharmacy, where it is verified by one of the company’s pharmacists. Users complete their order in the Amazon app, then scan a QR code at the kiosk.
A remote pharmacist completes a final check of the order before dispensing the drug, the company said. Patients can also speak with the pharmacist through the kiosk via video or phone call.
McClellan said the kiosks are not intended to replace pharmacists “but to bring their expertise closer to the point of care.”
“This model keeps pharmacists at the center of the care experience while expanding how and where they can support patients,” she added.
At launch, kiosks will not be available to telehealth patients, only those receiving in-person care from a physician. Patients are not required to be a medical member to use the kiosks.
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