The US healthcare system is an expensive and outdated giant. It is the world’s most expensive and only for-profit healthcare system. The disorganisation and inefficiency is spread across and into all areas of the system, from medical innovation and service delivery to healthcare insurance and management. As a result, for employers, the healthcare system has always been a massive corporate expense.
With the problem being so ill-defined and distorted, a simple resolution is impractical. The only way to resolve such an issue would be some sort of a collaborative and contrarian approach. Who might be able to execute such an approach? And what is their plan?
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In January, the internet giant Amazon announced its collaborative efforts with JPMorgan Chase and Berkshire Hathaway to enter into the healthcare industry. This announcement was a declaration to improve the healthcare system for their combined 1.1 million employees, by decreasing costs and improving services. Amazon hopes to utilise its technology platform to integrate and coordinate the disconnected system. However, the integration of novel technology is a mere beginning toward an improved healthcare system, with concerns regarding scalability and system adoption looming ahead. While long-term incentives do exist for all three parties, it will be interesting to see whether or not all members of the team remain invested in this long and uphill battle.
Interestingly, in February, it was reported that Amazon is gearing up to launch a business to become a market leader in in the healthcare retail industry. The internet retailer has obtained wholesale distribution licenses for medical devices in several states, and aims to become the largest medical devices supplier. This is a continuation of Amazon’s overall continued interest in the healthcare sector; in 2017, Amazon was identified to be interested in entering the pharmacy services industry with Aetna.
It is unclear whether or not the collaboration between the technology giant and investment giants will bring forth a resolution to the healthcare system. However, it does seem evident that Amazon is interested in dominating the healthcare sector, as they did the online retail sector.
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