Customer Experience and Design

Amazon Healthcare: Momentum to Renovate American Healthcare

Amazon came forward and announced it would begin to seek new ways to address and possibly reduce rising health care costs for its own employees. The initiatives are all part of a bigger strategy to improve the shopping experience for businesses and consumers.

Amazon’s strategy is in the beginning stages of the process but is already gaining worldwide attention after announcing a potential partnership with Berkshire Hathaway and JPMorgan Chase. The potential dominant healthcare group would strive to better control costs and reduce spending on health insurance for the 840,000 employees working for them with the end goal being that other companies would join in on the healthcare plan as well.

When Amazon interrupts a new industry, they don’t participate in the old traditions but rather approach the industry with fresh and inventive methods.

So how is Amazon and the coalition of leaders shaking up the healthcare industry?

Implementing a strategy with limited to no profit motives. The company’s plan to establish a healthcare platform with no profit goals will shake up the industry, with current companies driving for-profit provisions.

The online shopping giant is already concentrated its power on an extensive health care segment; with a wide variety of private-label over-the-counter medicines and building a dominant business marketing medical supplies to physicians, doctors and hospitals.

The e-commerce giant has long sold Band-Aides, Tylenol, and various medical products; but the shift in industry came when Amazon quietly implemented a private-label line of medications and medical products. The Basic Care line has a personal page on the Amazon site and offers an extensive variety of items including; ibuprofen, allergy medicine, hair growth products and nicotine gum.

Why the switch? Growing telemedicine.

With instantaneous digital communication, doctors and physicians can participate in telemedicine; diagnosing and treating aliments remotely. However, this process is quite uncommon. Why is this? In an age when people store extremely sensitive personal information online, why not submit information to physicians to receive diagnosis.

Major banks have identified that consumers will share personal information once the platform has proven itself to be safe and secure. Therefore, Amazon is working to provide a secure platform for clients to use.

The opposition to this process will be those who don’t want to wait a 24-48 hour period for delivery of products or services; but rather still want to go to a brick and mortar building to see their primary physician.

The venture has risks and positive benefits. It will be interesting to see how these major corporations build a business plan as a single unit; and then see how the employees and surrounding companies come together with it.


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