Two recent publications have set the healthcare industry into a buzz. The first report discovered that CVS is thinking about purchasing the health insurance conglomerate Aetna. The next report we’ll be discussing uncovered how Amazon is obtaining pharmacy licenses with multiple states.
As we see the situation, both of these moves are extremely interconnected. The apparent relation, various investors with shares of pharmacy stocks stated that there’s a genuine belief Amazon will go into pharmaceutical markets. With its demonstrated capacity to disrupt markets and their extensive footing in retail after acquiring Whole Foods, Amazon can become an instant behemoth.
As Amazon starts to become more competitive with each passing year, it’s making pressuring more creative efforts with players like CVS and similar pharmacy benefits managers. It’s obvious CVS’s shift into health insurance is due in part because of the defensive measures they need to take against Amazon, recently announcing plans to provide global next-day shipping with prescriptions.
But the progress of these companies is more nuanced than that. Both corporations are trying to “dominate” the healthcare field. Amazon has already been considered as the “everything store,” and providing pharmaceutical services would be the next logical move in its expansive consumer-facing business.
CVS has been moving in a slightly different manner in its defense; expanding on its widespread retail and healthcare footprint to combine insurance services, pharmacy and everyday care for overall health services located conveniently at locations near you. Think about it like this, offering insurance with a retail footprint to grant both routine care and pharmacy services through its MinuteClinic services, CVS can own the life cycle of the healthcare customer in many ways. From things like care provision to insurance.
Using this special operation, CVS can again earn a competitive placement over almost every other company attempting to dominate the healthcare customer. This is the ensuing transition in the ‘consumerization’ of the health field. By combining as many aspects of healthcare provisions as possible under a single umbrella, corporations in the healthcare field can provide the customer-focused experience Amazon and similar companies have built their ecosystems on.
Drew Madden is an entrepreneur in Healthcare IT who loves bringing people together to make unique and attractive company cultures, high caliber teams, and trusted client connections.
Serving as president through 2011 to 2016, Drew initially joined Nordic Consulting Partners in 2010. Nordic is the most renown Epic consulting business in the world and the beneficiary of various KLAS recognitions for quality consulting.