Amazon pharmacy push facing fresh challenge
Amazon’s foray into the healthcare market may have just hit a roadblock, thanks to a company partly owned by pharmacy rivals, including CVS.
The e-commerce giant had a deal with a company called ReMy Health to access data collected by another company – Surescripts. However, the latter has terminated its contract with the former.
Surescripts made the decision to end its relationship with ReMy Health after a preliminary investigation revealed that it allegedly provided unauthorized access to patients' health information.
As a result, PillPack will no longer have access to medication histories, and other information, without contacting patients.
“Surescripts has uncovered evidence that the fraud in connection with ReMy Health’s requests for patient data was not limited to patient medication history information,” Surescripts CEO Tom Skelton said in a statement. “This evidence shows the fraud extended to requests for patient health insurance and prescription price information that ReMy Health provided to drug marketing websites.”
Skelton added that while the volume of activity was “very small,” integrity is particularly important at a time when patients are already “skeptical” of the industry’s ability to protect their data.
Surescripts is owned by Cigna, CVS and associations of pharmacies and drugstores. It manages so many prescriptions in the U.S. that it was sued by the Federal Trade Commission over potentially having a monopoly over the e-prescribing market.
A spokesperson for PillPack did not immediately return FOX Business’ request for comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVS | CVS HEALTH CORP. | 59.85 | -0.11 | -0.18% |
| CI | THE CIGNA GROUP | 337.80 | +1.30 | +0.39% |
| AMZN | AMAZON.COM INC. | 207.89 | +2.15 | +1.05% |
ReMy Health president and CEO Aaron Crittenden said in a statement that Surescripts’ claims are unfounded, and that the company “operated in full alignment” with its contract and privacy law.
Amazon purchased PillPack in 2018 for $1 billion.
Amazon is also involved in a joint health care venture with Berkshire Hathaway and JPMorgan Chase – called Haven. The aim of the venture is to address the rising costs of health care.
