Healthcare is profitable! That is why you should watch the big corporations, not reality tv shows. That is how you spot future trends. See the four examples below:
1. Amazon, JPMorgan Chase, and Berkshire Hathaway
In January 2018, Amazon, JPMorgan Chase, and Berkshire Hathaway announced their collective intent to form a new organization focused on delivering healthcare benefits at a lower cost to patients. The venture would tackle two of healthcare’s largest challenges: price transparency and patient centricity, elements that will be integral to competing in the marketplace for health systems of the future. The joint venture has already brought on several heavy hitters from both inside and outside the healthcare industry, including Atul Gawande, MD, a surgeon at Brigham and Women’s Hospital; Taha Kass-Hout, MD, former FDA Chief Health Informatics Officer; and Jack Stoddard, former GM of Digital Health at Comcast. These types of hires further signal the venture’s willingness to explore nontraditional methods of solving healthcare’s challenges. The “Amazon effect” was manifested in this venture and has provided the impetus for much of the disruption in healthcare that took place this year.
2. Alphabet Invests in Health Insurance Start-Up
In August, Alphabet invested $375 million in six-year-old health insurance start-up Oscar Health. Oscar CEO Mario Schlosser claims the investment allows Oscar to “hire more engineers, we can hire more data scientists, more product designers, more smart clinicians who can think about health care a different way. It’s the acceleration of that product roadmap that fascinates us the most.” This investment gives Alphabet a 10% share in Oscar Health and follows a previous $165 million investment last March through Alphabet’s Capital G investment company and Verily Life Sciences. Additionally, the investment will enable the expansion of a new Medicare Advantage product line in 2020. Like Amazon, Alphabet will seek to optimize its experience in analyzing massive amounts of data to enhance the consumer experience.
3. Google Hires a CEO from within the Industry
In early November, Google hired David Feinberg to oversee its health initiatives. Feinberg comes from Geisinger Health and is expected to help coordinate siloed healthcare efforts of the various organizations of Alphabet, which is Google’s parent company, into a more cohesive approach. Alphabet’s companies have been involved in healthcare mostly on the B2B end, working on projects ranging from using Nest to detect falls in senior living facilities to utilizing AI to help physicians take notes during hospital visits. Rather than entering the market itself, Google seems to be finding opportunities for performance improvement in existing healthcare organizations. We’ll see what 2019 brings regarding Google’s healthcare efforts and expect to see a more cohesive strategy at a minimum.
4. Apple Tests the Market with Wearables and EHRs
In early December, Apple announced the availability of its long-awaited ECG app with irregular heart rhythm notifications. This follows Apple’s move into the EHR space, which officially began in January when the company began allowing patients from 30 different healthcare organizations to gather their medical records on their phone via a healthcare app. These won’t be the only innovations Apple will have in healthcare, considering its iPhones are in the hands of over 90 million Americans, a huge opportunity for healthcare deliverability and patient
Thanks to authors of this article, Don Cosentino and Sean Hartzell. Read the full article at:
Another great article about this important topic by Consentino and Hartzell.