In the recent years, Amazon is able to lay foundations for substantial healthcare push. Amazon is considered the first tech titan to emphasize on the health space. Google has verily and DeepMind; the Apple Watch is providing ECG while IBM is coming forward with various strands of innovative healthcare software. In the past, Facebook has introduced a data-sharing project. The main motive behind Amazon’s interest in healthcare industry is probably the same like other competitors get attracted towards it.
“Amazon likes to target two kinds of industry: the first is where they see an opportunity to reform, where it’s not the most user friendly of industries, where there’s a lack of trust… The second is where they see a lot of uneven profit margins being distributed, where a few companies are making a lot of money, they have high profit margins and customers are unhappy.” According to a statement by Anurag Gupta, VP at tech analyst Gartner, intermediaries such as drug wholesalers, distributors and drug wholesalers “sucking a lot of money out of the system”.
The key reasons which interests these industry giants to healthcare is: size of industry is huge and demand for its services is climbing up day-by-day. Another important reason is, the industry is full of inefficiency. The last one is changing expectation and perception of consumers. As we know other industries and retailers have become more customer-centric and responsive, but healthcare is comparatively steady in that.
Moreover, healthcare being delivered is altering drastically with patients treated in hospitals in becoming less while outpatients are propelling. Payers are adopting systems that reimburses their finance, declines the overall cost of this industry.
“The long and short of it is we have a $3.5 trillion industry and the delivery environment is moving out of the hospital settings, which has high barriers to entry for external business, to the outpatient environment, which has low barriers to entry, so there’s a glut of revenue newcomers can compete for,” stated Jeff Becker, senior analyst at tech analyst Forrester.
Amazon is pushing its limits in healthcare industry with help of launching software as well as hardware projects. Late last year, the company has declared that it plan to extend its comprehend NLP to medical records which will assist healthcare providers to extract important information from medical notes and also medical jargon they have. AWS has dedicated Life Science unit and dedicated healthcare.
On the hardware side, Amazon has created its own devices with different levels of success. Starting from Fire tablet to now-defunct own-brand phone. Amazon has recently collaborated with Arcadia Group where different range of consumer medical devices are available, which is inclusive if blood pressure monitors.
The ultimate aim is to cater US employees and their families with high-quality, simplified and transparent healthcare services at reasonable cost.