Intro
Amazon has long eyed the healthcare market, but its first two ventures—Haven Health and Amazon Care—never quite hit the mark. Now the e-commerce giant is taking a fresh approach by rolling out at-home diagnostic testing. If this third try succeeds, Amazon could reshape how we get medical insights, making lab work as simple as a few clicks.
Over the last decade, Amazon has dipped its toes into everything from prescription delivery to virtual clinics. Each effort has taught the company valuable lessons about patient needs, provider networks and regulatory hurdles. Diagnostics may be the missing link: the data cornerstone that turns Amazon’s ambitions into a full-fledged health platform.
A third act in healthcare
Amazon’s first big healthcare project was Haven Health, a joint venture with JPMorgan Chase and Berkshire Hathaway announced in 2018. Hailed as a potential game-changer, Haven aimed to tame medical costs for the trio’s employees. But by early 2021, it shuttered, having struggled with complex insurer-provider relationships and regulatory red tape.
Next came Amazon Care, a hybrid telehealth service launched in 2019 and rolled out to some corporate employees in 2020. It combined virtual doctor visits with in-home nurse visits for follow-ups and certain basic procedures. Despite early promise, Amazon Care never scaled beyond select regions and closed to those employees at the end of 2022.
Meanwhile, Amazon kept building its health toolbox. It acquired PillPack in 2018 and rebranded it as Amazon Pharmacy, delivering prescriptions by mail. In 2023, it closed on a $3.9-billion purchase of primary-care chain One Medical, giving Amazon a network of brick-and-mortar clinics in major U.S. cities. Yet something was still missing: reliable, timely lab data.
Why diagnostics?
Lab tests drive roughly 70 percent of medical decisions, according to industry estimates. From routine cholesterol panels to hormone checks and infectious-disease screens, diagnostics inform diagnoses and treatments. For Amazon, providing tests could be a gateway to deeper patient engagement and more integrated care.
The new service lets customers order at-home test kits with a few taps on Amazon’s site. Kits arrive in discreet packaging with clear instructions and pre-paid return envelopes. Users collect a small blood or saliva sample, mail it to a partner lab, and get results online within days. Tests range from nutrition markers and thyroid function to common STDs and COVID-19 antibodies.
By embedding diagnostics into its ecosystem, Amazon can tie results to pharmacy records, virtual visits via Amazon Clinic, and in-person care at One Medical. Data flows into a unified platform that patients and providers can access, potentially reducing duplicate tests and speeding care decisions.
Partnerships and technology
Amazon isn’t doing this alone. It has inked deals with leading clinical labs—think LabCorp and Quest Diagnostics—for sample analysis. The company also leverages AWS to secure and analyze health data, applying machine learning to flag critical results or suggest follow-ups through Amazon Care’s telehealth network.
Alexa voice technology is another hook. Customers can ask their smart speaker for test status updates or to schedule a virtual consultation if results fall outside normal ranges. This seamless integration of hardware, software and services is classic Amazon: create stickier customers by making every step easier.
Opportunity and challenges
The global at-home diagnostics market is projected to grow at double-digit rates over the next five years. Competitors include startups like Everlywell and LetsGetChecked, plus pharmacy chains offering drive-up tests. But few have Amazon’s brand trust, logistics scale and tech toolkit.
Still, hurdles abound. Healthcare is one of the most regulated industries. Amazon must navigate state licensure for labs, data-privacy laws like HIPAA, and strict rules on medical marketing. Margins on diagnostic tests can be thin, and insurers may resist covering direct-to-consumer kits, especially for routine panels.
Then there’s the trust factor. Patients may worry about privacy or accuracy without a doctor’s supervision. Amazon will need clear communication on test limitations, follow-up pathways, and data security to win over skeptical consumers and providers.
Analyst take
Industry watchers believe Amazon’s move is logical but not guaranteed to succeed. “Diagnostics give Amazon a critical ingredient for healthcare—data,” says Sarah Lee, a healthcare analyst at Bright Insights. “If they can tie that data to virtual and in-person care, they’ll create a powerful flywheel. But execution is everything. Slow labs, regulatory setbacks or privacy missteps could stall momentum.”
Amazon’s leadership seems undeterred. Sources say the company is quietly testing the service in select markets before a broader rollout. The goal is to refine logistics, shore up clinical partnerships and work out insurance-billing kinks.
Why it matters
If Amazon nails diagnostics, it could lower costs and boost convenience for millions. Imagine skipping the lab waiting room, getting your lipid panel at home, then chatting with a clinician about diet tweaks—all in a day. For employers and payers, better data could mean smarter care paths and fewer expensive hospital visits.
And for Amazon, healthcare is a massive, under-penetrated frontier. E-commerce revenue still grows, but profit margins on retail are slim. Health services promise higher margins and stickier customers—ideal ingredients for Amazon’s long-term play.
3 Key Takeaways
• Amazon’s third healthcare push targets at-home diagnostic tests to fill data gaps left by past ventures.
• The service promises easy ordering, discreet home-sample collection, lab analysis by partners, and online results.
• Major hurdles remain around regulation, insurance coverage, data privacy, test accuracy and patient trust.
Frequently Asked Questions
Q1: Which tests are available through Amazon’s at-home kits?
A1: Initial offerings include blood lipid panels, thyroid and hormone panels, nutritional markers, common STD screens, COVID-19 antibody tests and select allergy panels. Amazon plans to expand into more specialized diagnostics over time.
Q2: How much do the test kits cost, and does insurance cover them?
A2: Pricing varies by test, typically ranging from $50 to $150. Some employer health plans and insurers are negotiating coverage. Amazon also offers occasional promotions to Prime members.
Q3: How does Amazon protect my health data?
A3: Amazon says all lab results are stored on secure, HIPAA-compliant systems powered by AWS. Customers control who sees their data and can download or delete reports at any time.
Call to Action
Curious about at-home diagnostics? Keep an eye on Amazon’s Health & Personal Care section for updates and early-access invitations. And if you’ve tried other at-home test kits, share your experience in the comments below—your insights could help shape the future of home-based healthcare.
