Healthcare industry is known to be complex, growing and ..well, expensive; both to care providers and patients. The complexity comes from the decentralized and defragmented nature of Healthcare Providers. There are just too many inputs for a single output. Its costs comes from various sources such as, the latest technology and machinery, and the pharmaceutical side of it; prescription drugs. Healthcare as an industry is growing due to more and more people aging and complicated diseases being identified, the cost are, as a result, also increasing.
While other countries have a universal healthcare system, U.S Healthcare relies on health insurance coverage, often provided by the employers or paid privately. But since health insurance premiums are often expensive, minorities are left with little or no health coverage.
The New Spark
Amazon is notorious disrupting the industries is entered, from books to on-demand streaming, and groceries. It’s most recent target – the U.S Healthcare Industry.
It recently announced a partnership with two other U.S giants, Berkshire Hathaway and JPMorgan to tackle the ever-rising healthcare costs. (1)
“Our goal is to create solutions that benefit our US employees, their families and, potentially, all Americans.” – JP Morgan CEO, Jamie Dimon.
The trio stated that the ‘solution’ would be “independent and free from profit-making incentives and constraints.
The Game Changer
While the actual affect on the healthcare industry is yet to be seen, the impact made was huge. The stocks of 10 larger health insurance providers and pharmacy were dropped a combined value of $30 Billion upon the announcement of the partnership. (2)
While Amazon is leagues ahead in their disrupting game, if this venture is a success, other large companies may as well be able to enter the race to provide affordable healthcare. Of course, new healthcare regulations that may spring up during this time is another issue.
The Perfect Trio
With the vast knowledge and expertise of the three companies, Berkshire Hathaway’s understanding of insurance providers, JPMorgan’s financial competence, and Amazon’s technological and distributing know-how; affordable healthcare might be only few steps away.
(1) Via TheGuardian.com
(2) Via QZ.com
(3) Via CNN.com
(4) Via CNN.com