The Healthcare Disrupters are here ... what it means for you
The disrupters have entered healthcare and will affect you.
Amazon recently announced another venture — this time, into the healthcare space. Some people view this venture with doubt, some are fearful of being lost in a vast network of interconnectedness with no source of truth, and others realize "the real truth." This latest venture, Amazon Care, is based on providing care to Amazon employees, offering virtual and in-person care, telemedicine services, chat and remote video, as well as follow-up visits in person and prescription drug delivery.
What gives Amazon the potential to succeed?
Can Amazon succeed where doctors, pharmaceutical companies, CMS, reimbursement entities, and others have created a never-ending saga, often ending in a round-robin scenario for individuals? You know the one — I called my doctor, was told to call my insurance company, was told to call my care manager, was told I'm not covered, but my employer has coverage...
While healthcare in the U.S. is not user-friendly, Amazon has systems — computing systems, cloud technology, analytic resources, and structure in place and functioning — which is lacking or minimally functioning for the healthcare industry. The impact of Amazon in healthcare isn't as much about what they are doing (as they can do pretty much everything they desire to do), but that Amazon has entered the sacred domain of healthcare. While we grapple with provider vs. payer, EMR silos, and the never-ending stream of government updates, changes, payments, and audits, advanced companies with thought leaders, innovators, and thousands of employees who need healthcare have taken the lead.
Why Amazon will be successful
The mammoths — Amazon, Apple, Google — do not need a Medicare, Medicaid, Blues, or Kaiser Permanente; they do not need "the rules and regs of the government." They are not in that ballgame. They have the data, the system, the brains, the cooperative parties, the governance to do the job. With online data platforms, an e-commerce site, virtual personal assistants, an extensive supply chain, 80 million satisfied Prime members, and a food market, Amazon already has the network. They are not looking for another entity to give approval, with delayed payment and possible recoupment of payment.
The take-away
- The wakeup period for traditional healthcare is over — Amazon, Apple, and Google have arrived, and they will stay, providing conveniences that will leave traditional medical providers behind and unable to catch up.
- With healthcare expenditures at around 20% of all U.S. spending, there is ample room for Amazon and other technology giants to enter and find success.
- What can traditional healthcare providers do with the changing landscape? Focus on services they can provide that the disrupters cannot, and accept that some services are gone for good. This focus must start now.