When you’re the size that Amazon is and you’re looking for growth, the only thing that could really move the needle for you is to attack a massive market opportunity.
How does $4 trillion sound?
That’s about what Americans spend directly on healthcare each year.
Consider this past week’s acquisition as the solidifying piece of the story. Amazon is going to become your healthcare provider. They already know a lot about your habits, hobbies, how much time you spend sitting on your ass watching video, what prescriptions you’re getting, etc.
Getting into primary care clinics is just the next step in this evolution. Amazon has a habit of driving massive disinflationary pressure into the markets it chooses to tackle. Nowhere would this be a more welcome development than in the cost of healthcare / health insurance for both business owners and consumers.
The below is from BioPharma Dive and is worthy of your attention…
Amazon sent shockwaves through the health technology sector when it revealed plans last week to buy primary care network One Medical for $3.9 billion.
The acquisition, which brings almost 190 clinics, a subscription telehealth service and contracts with thousands of employer clients under Amazon’s umbrella, could fast-track the e-commerce giant’s goal of assembling a vertically integrated healthcare business, experts said…
Amazon now has offerings in telehealth and in-person primary care, diagnostics, pharmacy and wearables. The company could potentially integrate medical data with apps offering recommendations for health activities and products, reducing the time and burden of doctor’s visits, delivering drugs through online pharmacy PillPack, providing food through Whole Foods or Amazon Fresh — with a primary care doctor linked in all the way.
“I think that’s huge. Does it fix everything that’s wrong with our healthcare system? No. But they didn’t set out to fix our healthcare system. They set out to make some money,” said Michael Abrams, managing partner of health consultancy Numerof & Associates.
Read the rest:
Amazon will see you now: reading between the lines of the One Medical acquisition (BioPharma Dive)