Amazon Introduces Prescription Kiosks at Los Angeles One Medical Locations

Amazon is making a bold move to further integrate itself into the healthcare landscape, launching prescription drug kiosks at select One Medical offices in Los Angeles, CNBC has learned. This initiative, announced Wednesday, signals a potential disruption for traditional brick-and-mortar pharmacies, already grappling with shrinking margins and heightened competition.

Operated by Amazon Pharmacy, these kiosks function much like sophisticated vending machines, promising to dispense prescriptions to patients within minutes of their doctor’s appointment. The machines are capable of stocking hundreds of prescriptions, including common medications like antibiotics, inhalers, and blood pressure treatments. Inventory will be tailored to the specific needs of each location, optimizing for local demand.

“We recognize that patients often face a significant hurdle when required to make an additional trip to the pharmacy after a doctor’s visit, leading to many prescriptions going unfilled,” explained Hannah McClellan, Vice President of Operations at Amazon Pharmacy. “By directly embedding the pharmacy within the point of care, we’re breaking down this critical barrier and facilitating immediate treatment initiation for patients, which is paramount.”

This rollout comes at a critical juncture for established pharmacy chains. Companies such as Rite Aid, CVS, and Walgreens are facing mounting pressure from declining drug margins and the growing competitive threat posed by retail giants like Amazon and Walmart in the sale of higher-margin convenience goods. This dual pressure has resulted in a wave of store closures in recent years, underscoring the vulnerability of the traditional pharmacy model.

Amazon’s continued investment in healthcare underscores its long-term strategy to penetrate this complex and often inefficient sector. The acquisition of online pharmacy PillPack in 2018 for approximately $750 million, followed by the launch of Amazon Pharmacy, marked initial forays into the prescription drug market. The subsequent purchase of primary-care clinic One Medical in 2022 for $3.9 billion, representing its third-largest acquisition to date, further solidified its ambition to provide comprehensive healthcare services. While its foray into telehealth with Amazon Care was ultimately shuttered, the company continues to explore and refine its approach to virtual care.

Earlier this year, Amazon reorganized its healthcare businesses into six distinct divisions, aiming to accelerate innovation and improve efficiency in the wake of executive departures. This restructuring reflects the company’s commitment to streamlining operations and fostering agility within its evolving healthcare ecosystem.

The initial rollout of the kiosks will occur at One Medical clinics in downtown LA, West LA, Beverly Hills, Long Beach, and West Hollywood. Amazon plans to broaden the availability of the kiosks to additional One Medical locations and other strategic sites shortly thereafter.

“Looking ahead, we envision significant potential for this technology to be deployed in diverse settings where rapid access to medication is crucial,” stated McClellan. “This includes locations where immediate medication availability can make a tangible positive impact on patient outcomes.”

The user experience is designed for seamless integration with the Amazon ecosystem. Before utilizing a kiosk, a patient’s healthcare provider must transmit the prescription to Amazon Pharmacy, where it undergoes verification by a licensed pharmacist. Patients then complete their order through the Amazon app and scan a unique QR code at the kiosk to initiate dispensing.

A remote pharmacist conducts a final verification of the order before the medication is dispensed, ensuring accuracy and safety. Patients also have the option to communicate directly with the pharmacist via video or phone call through the kiosk interface, facilitating personalized consultations and addressing any questions or concerns.

McClellan emphasized that the kiosks are not intended to replace pharmacists but rather to augment their reach and expertise by bringing them closer to the point of care. “This innovative model prioritizes the role of pharmacists within the patient’s care journey while concurrently expanding the ways and locations in which they can provide support,” she explained.

Currently, kiosk access is limited to patients receiving in-person care at One Medical clinics. Telehealth patients are not yet eligible to utilize the kiosks. Furthermore, kiosk usage is not restricted to One Medical members, making the service accessible to a broader range of individuals.