Big Tech Med
The big four technology companies - Google, Amazon, Apple, and Microsoft - are accelerating their pursuit of the healthcare market as they begin to refine their strategies for certain corners of the ecosystem. US healthcare players are forced to shift their digital transformation efforts online and Amazon, Google, Apple and Microsoft lend their data and technological expertise to become attractive players in healthcare. This comes as health organizations are struggling with an increasingly sicker population, higher costs, and changing consumer demands for faster and more convenient services.
In this presentation, Ron Galloway examines the major strengths and offerings of the big four tech giants to bring healthcare closer to home through their healthcare strategies in different corners of the market. We also outline how their health strategies are causing a tidal shift in the healthcare industry and examine which players benefit and which threaten the incumbents.
Key points in the presentation:
1) Provide an overview of Google, Amazon, Apple' and Microsoft's most prominent healthcare projects and plans.
2) Highlight the persistent gaps in the US healthcare system that provide Big Tech and their cutting-edge technologies with entryways into the industry.
3) Identify the incumbent healthcare players that will benefit from and be threatened by big tech companies' foray into healthcare.
4) Outline the barriers that are still in place that are stifling tech giants' dive into the health space.
The Amazon Pharmacy
Jeff Bezos once said “your margin is my opportunity.” Today Amazon is exploiting opportunities and businesses that would have been unimaginable just a few years ago. Pharmacy is one of those businesses.
Large pharmacy chains have already had to deal with Amazon disrupting the “front of the store.” Now Amazon is attacking the other part of the pharmacy business, drug distribution.
Amazon’s intentions in this area were quiet until 2018 when it bought PillPack for $750 million, immediately giving them pharmaceutical licenses in 48 states. That very day, the stocks of Walgreens, CVS, and Rite-Aid lost $11 billion in value. The PillPack purchase allows Amazon to not only move against pharmacies, but against pharmacy benefit managers, who manage the drug dispensation for major employers and others in the distribution chain.
Why is Amazon pursuing Pharmacy? Because the company’s assets include:
Potential employer partnerships
A pre-existing customer base (Amazon Prime)
A pre-existing physical presence (450 Whole Foods locations)
Who is at risk from Amazon?
Traditional brick-and-mortar pharmacies, and
Pharmacy benefit managers
In this presentation, Ron explores Amazon’s intentions and strategies as it enters the pharmaceutical space and how participants in pharmaceuticals can respond.
While telemedicine has been available for years, consumer use of the technology has been slow due to insurers’ lack of payment for these services. The coronavirus pandemic removed all barriers and gave consumers the necessary boost to expand telemedicine a larger scale. It was a watershed moment for the industry's ability to deliver health-related services and rethink healthcare.
As the outbreak became severe in the U.S., consumers flocked to telemedicine. Adoption rates reached 24% of U.S. adults by June 2021- up from 11% in February 2020, according to a recent survey by the American Medical Association.
Even as the pandemic subsides, we will believe that a significant proportion of consumers will remain tied to virtual care efforts and the innovative new tools that come along with it.
Ron's presentation on Healthcare Anywhere looks at:
The key factors for telemedicine use and adoption
Where the market is headed
Future financing and virtual care innovation
Opportunities and barriers to sustainable deployment
The coronavirus pandemic forced providers, payers and pharmaceutical companies to rebuild healthcare delivery. You can now get Healthcare Anywhere.