SEIZE THE $50 BILLION SITE-OF-CARE SHIFT OPPORTUNITY
Get the tools, data, and insights to drive growth.
Learn more
RECALIBRATE YOUR HEALTHCARE STRATEGY
Learn 4 strategic pivots for 2025 and beyond.
Learn more

Library

| Daily Briefing

Amazon will now sell you a hospital room for $285,000. (That includes free shipping.)


In its latest eye-opening move into medical supplies business, Amazon on Thursday started offering pre-fabricated hospital units, Christina Farr reports for CNBC.

What 'Amazon health care' could look like in 5 years

How Amazon is making inroads into health care

The online retailer previously had begun selling a range of medical supplies, aiming to provide hospitals a way to purchase materials outside of the group purchasing organizations (GPOs) through which hospitals conventionally purchase supplies. While GPOs afford discounts, they can lack transparency regarding costs, according to Farr.

And its medical supply sales are only one way that Amazon has made inroads in the health care industry. In January 2018, the company announced a joint venture with Berkshire Hathaway and JPMorgan Chase to improve employee satisfaction with health care and reduce costs. 

What do you get when you order a hospital room on Amazon?

New York-based EIR Healthcare makes the customizable hospital rooms, called MedModular, which include a bathroom and a bed.

The product's description on Amazon boasts, "MedModular is the world's first 'smart hospital room in a box,' and offers a vastly improved experience from the traditional hospital room—for patients and caregivers alike." It promises "improved workflows for caretakers and easier recovery for those they're treating," highlighting "[s]mart design touches" such as "curved corners where no bacteria can grow."

At about $285,000 apiece, the units are hardly priced as an impulse buy—but on the bright side, they come with free shipping.

EIR Healthcare CEO Grant Geiger said, "We're targeting hospitals and health systems." He noted, "There's a trend towards bringing more transparency in the health care space."

Geiger added he's seen growing interest among hospitals for using the units as simulation labs. The company has also thought about selling to customers in the military.

According to Geiger, his company engaged in months-long talks to get the units listed on Amazon's marketplace. In addition, EIR Healthcare needed approval to ship and deliver the units, which entails using giant shipping containers to transport the units down freeways.

As of publication time, the product had not received any customer reviews on Amazon. It was available for delivery as soon as Feb. 1 (Farr, CNBC, 1/24; Spitzer, Becker's Hospital Review, 1/24).

Innovation 101: Cheat sheets for today's digital health systems

Download our cheat sheets so you can keep track of the fast-changing technologies and capitalize on opportunities for IT-powered innovation. Check out our guides for these topics and more:

Explore all 10 Cheat Sheets


SPONSORED BY

INTENDED AUDIENCE

AFTER YOU READ THIS

AUTHORS

TOPICS

INDUSTRY SECTORS

Don't miss out on the latest Advisory Board insights

Create your free account to access 1 resource, including the latest research and webinars.

Want access without creating an account?

   

You have 1 free members-only resource remaining this month.

1 free members-only resources remaining

1 free members-only resources remaining

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
AB
Thank you! Your updates have been made successfully.
Oh no! There was a problem with your request.
Error in form submission. Please try again.