Amazon's Push in Health-Care Supply Chain Has Faded, UBS Says

(Bloomberg) -- Amazon.com Inc.’s push into distribution of health-care supplies and equipment has lost momentum, according to a survey by UBS Group AG.

Hospital purchasing managers say they are buying fewer medical supplies from Amazon compared to last year, while increasing their purchases of office supplies from the online retailer, UBS analyst Kevin Caliendo wrote in a research note on Monday. One reason could be that respondents are seeing “less discounting” for medical supplies, but it’s unclear whether Amazon discounts are lower or if wholesalers offered better deals in response to Amazon’s push in the sector, he said.

UBS’s survey found that while hospitals still expect to increase their supply purchases through Amazon over the next three years, the percentage of respondents in talks for sourcing agreements with Amazon has declined to 7% from 11% last year. The bank surveyed 100 purchasing managers.

At a conference last year, hospital supply-chain executives described Amazon’s effort in the medical distribution space as still “in its infancy,” with the biggest issues relating to procedures that allow hospitals to track and trace the products they buy from vendors.

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To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net

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