By Greg Bensinger
SAN FRANCISCO, May 27 (Reuters) - Amazon is putting a doctor in charge of its growing healthcare business.
The firm on Wednesday announced Dr. Roy Schoenberg, 58, who co-founded American Well Corp., a telehealth medicine company, will take over the healthcare business starting July 1. He recently stepped down as executive chairman of Amwell, as it's known, and had been co-CEO of the Boston-based company until 2024 before passing the torch solely to his brother, Ido.
Neil Lindsay, 61,
will relinquish his role atop the healthcare unit and leave Amazon before the end of the year, after a nearly five-year stint running the business and 16 years at Amazon. Lindsay, who had no prior background in healthcare, has headed healthcare since November 2021 and was previously a senior vice president in charge of the Prime membership program and held roles in marketing, including for Kindle e-readers.
Schoenberg is also CEO of privately held elder care startup Aileen.ai, which he co-founded, according to its website. Amazon said Schoenberg has stepped down from that post.
Healthcare at Amazon encompasses a variety of businesses, including the One Medical chain of clinics and prescriptions by mail. The company has said it is one of its fastest-growing businesses, but does not break out its results.
Shares of Amazon rose 2.5% to $271.85 and Amwell gained 4.2% to $8.84.
The Federal Trade Commission named Lindsay, along with two other Amazon executives, in its 2023 lawsuit alleging the company made it deceptively easy to sign up for the $139 annual Prime membership and too difficult to cancel. Amazon admitted no wrongdoing as part of a $2.5 billion settlement with the FTC in September.
An Amazon spokesperson said there is "absolutely no connection" between the suit or settlement and Lindsay's planned departure and that Lindsay "has decided to pursue personal projects and advisory roles." The other two executives have maintained their roles.
While overseeing healthcare, Lindsay introduced a new One Medical discounted price tier available to existing Prime members.
(Reporting by Greg BensingerEditing by Rod Nickel)
