Amazon said on May 27 that Dr. Roy Schoenberg, 58, a co-founder of telehealth company Amwell, will take over running the company's healthcare business effective July 1. Schoenberg recently stepped down as executive chairman of Amwell and had been co-CEO of the Boston-based telehealth company until 2024, when he handed the co-CEO role solely to his brother, Ido.
The company also said that Neil Lindsay, 61, will relinquish the leadership of the healthcare unit and leave Amazon before the end of the year. Lindsay has led Amazon's healthcare efforts since November 2021, concluding a nearly five-year run in the role and departing after 16 years with the company. Prior to overseeing healthcare, Lindsay served as a senior vice president responsible for the Prime membership program and held marketing roles that included work on Kindle e-readers. Amazon said Lindsay will pursue personal projects and advisory roles.
Schoenberg is cited by Amazon as having been CEO of privately held elder care startup Aileen.ai, which he co-founded; the company said he has stepped down from that position. Amazon's healthcare operations span multiple offerings, including the One Medical chain of clinics and prescription-by-mail services. The company has said the healthcare business is among its fastest-growing, though it does not disclose separate financial results for that segment.
Market reaction to the leadership announcement was positive for both companies mentioned. Shares of Amazon rose 2.5% to $271.85, while Amwell shares gained 4.2% to $8.84.
The Federal Trade Commission had named Lindsay, along with two other Amazon executives, in its 2023 lawsuit alleging the company made it deceptively easy to enroll in the $139 annual Prime membership and difficult to cancel. Amazon admitted no wrongdoing in relation to that case as part of a $2.5 billion settlement announced in September. An Amazon spokesperson stated there is "absolutely no connection" between the FTC action or settlement and Lindsay's planned departure.
During his tenure overseeing healthcare, Lindsay introduced a new discounted One Medical price tier that was made available to existing Prime members. The company said the other two executives named in the FTC action have remained in their roles.
Context and implications
The appointment places a clinician and seasoned telehealth executive at the helm of Amazon's expanding healthcare business, while marking the exit of an internal Amazon leader who transitioned from Prime and marketing to run the healthcare unit. Amazon's statement that the healthcare operation remains one of its fastest-growing businesses underscores the strategic importance of the unit to the company, even as separate financials for the segment are not published.