followed by Amazon’s $3.9 billion Get a treatmentBusiness Insider reports that the company will Add Mental health services to the portfolio. Although there are skeptics who fear Amazon’s history of privacy in the healthcare context, some say the company’s move could be positive for the industry.
It was then that the tech behemoth first entered the healthcare sector. Got PillPackIn 2018, it was renamed to Online Pharmacy and later to Amazon Pharmacy. The company provides Amazon care How individuals in certain states receive treatment.
Although those efforts appeared to be bearing fruit, Amazon’s venture with Berkshire and JPM, called Haven, failed. scattered After many internal problems.
Despite the ups and downs, Amazon in A press release Detail a proposed medical purchase to improve the quality of care across the board:
We think healthcare is high on the list of experiences that need to be reinvented. Making an appointment, waiting weeks or months to be seen, taking time off work, driving to the clinic, finding parking, waiting in the waiting room, then the exam room, often a few minutes of rush with the doctor, then another trip to the pharmacy – to improve the quality of the experience and people in their day. We see many opportunities to give you valuable time.
Now that Amazon has its own drug distribution system, the acquisition could drive demand as the company now has access to suppliers in multiple markets.
For Dina Shakir, a partner at Lux Capital, Amazon’s move shows the value of healthcare to major tech companies.
“This deal underscores the value of Big Tech in healthcare and the importance of omnichannel/hybrid (brick + mortar in addition to virtual) as well as tech-enabled services,” Shakir told TechCrunch in an email. “It’s a better multiple/comp than we’re currently seeing in the public markets and shows that there are significant exit opportunities for companies even in a declining or frozen IPO market.”
But Adrian Awn, founder of Forward Health, says he wishes Amazon would do more.
“You’re taking on the most amazing tech company in the world and you’re aiming low,” he said.
A medicalBased in San Francisco, it provides care in nine markets and serves about 400,000 people, but for Aon, this is not enough for Amazon. Amazon needs to align itself with being proactive rather than reactive in healthcare, he explained to TechCrunch.
“What Amazon has done now is completely aligned with the wrong incentives,” Avon said. “They actually said, ‘We’re going to focus on keeping you employed, not alive.’
Despite pressure from the tech giant to expand its services, Aoun added that the company needs to be resourceful.
“Amazon has clearly made what I would argue is one of the most common mistakes in innovation,” Awn said. “They are trying to rebuild the old world. They are not trying to create and build a new world[…] If you really don’t want to be creative, I don’t know if this will do that much.
While it is confirmed that Amazon One Medical is in the works, the launch of their on-demand treatment is yet to begin. according to InsiderThe product was first reported through Amazon Care as a way for the company to strengthen its healthcare business.
Both Shakir and Aoun agree that Amazon’s expansion is creating new pressure for startups and investors to enter the space with a strong offering.
“At the end of the day, health care is a huge market opportunity, and the pandemic has shed light on a lot of weaknesses and trust in technology,” Shakir said. “With Amazon now in the market, having an enjoyable consumer experience is not only good, it’s critical. While Big Tech will always play a critical role in the healthcare ecosystem, breakthrough innovation comes more from early-stage entrepreneurs, with Big Tech at scale.” until
Yes, he said, there will be no desire to follow Amazon, but rather find ways to innovate in the space.
“This really opens up more opportunities for other players, because now Amazon is not going too far, in fact, it’s going to be a distraction.” Now, you have full opportunities for everyone to start getting into the game,” he said.
When Amazon began to implement the health care service in a large capacity, some have They raised the following questions: Information about patient privacy in light of recent events.
Talkspace and BetterHelp were in the spotlight earlier this year after the U.S. Senate reported that the companies may share data with Meta and Google to require these mental health app providers to clarify their data collection and sharing policies.
Shakir said Amazon needs to understand its position and accept the reality that big tech companies have a “complicated relationship with healthcare.”
“One of the challenges of building a product for healthcare is not only diversity, but understanding clinical workflows and consumer habits — but building within specific constraints like HIPAA, billing codes, EMR interoperability, etc.,” she said. “This can be especially challenging when innovating in a large company with its own stakeholders and competing priorities.”
Other tech companies like Apple and Google have also ventured into healthcare.
Although Apple did not find their company In collaboration with various health care providers To provide healthcare professionals with patient biometric information collected via Apple Watch. To name a few features, a patient can monitor their heart rate, download apps to help with newborn care, and manage medication intake.
Google On the other hand, he focused more on health care research. Through partnerships in various universities, they have been able to expand research on digital security, provide information on suicide and expand Fitbit’s features.
Big players focusing on healthcare can bring in new revenue with steam, but startups are also pushing startups to explore aspects of the space that haven’t received much attention in the past, but that could lead to significant improvements for patients and payers alike.