AHA Says Retail Revolutionists Face Big Strategic Questions in 2023

A new report from the American Hospital Association’s Center for Health Innovation looks at how retailers and tech giants like Apple and Google will drive transformational change in healthcare in 2023 and beyond.

WHY IS IT IMPORTANT

With billions of dollars invested last year, such as CVS Health’s purchase of Signify Health, the AHA report highlights that retail healthcare companies have captured significant market share in primary care, concierge medicine, virtual care, and home health services.

They also expanded their outreach into pharmacy benefit management, behavioral health and other areas, the AHA researchers report said.

One example is the Amazon. While the company is in the process of buying concierge provider One Medical for $3.9 billion – a deal the FTC could block – the online giant recently launched RxPass.

The new service allows Amazon Prime users in 42 states to pay $5 per month for 50 generic drugs.

Amazon is also driving innovation that expands access to next-generation diagnostics and digital therapy. AWS partners with GE Healthcare on AI solutions and supports several digital health startups through its Healthcare Accelerator program.

According to the report, Amazon may try to expand its primary care operations to compete with big retailers and may try to expand its relationships with hospitals and healthcare systems.

“The online retailer has launched Amazon Clinic, a message-based virtual care service available in 32 states to treat more than 20 common conditions,” the researchers report.

Meanwhile, CVS Health’s integrated care strategy is taking firm root and leaders are taking deliberate steps to further expand the portfolio, AHA researchers say.

The retailer has already used its ownership of Aetna to incentivize usage of CVS Health services. It connects consumers with CVS medical teams and expands virtual mental health and home health services.

The AHA is advising hospitals, healthcare systems, service providers and payers to look out for further retail involvement this year.

“The company plans to spend $3 billion on further digital enhancements to improve the customer experience,” the researchers said.

Walgreens is also facing a key year with its “comprehensive approach” to healthcare, according to the AHA report.

With a $5.2 billion investment in primary care provider VillageMD, a majority stake in CareCentrix that serves patients with complex or chronic conditions, and other investments, the company expects its health care operations to be profitable as it continues to increase presence in primary health care.

Meanwhile, Apple and Google are moving beyond the primary care market in their foray into healthcare. The tech giants will use their technology to forge partnerships with payers, healthcare systems and other organizations, the AHA said.

The question is, “Will patients be willing to continually share the personal health data they collect and own?”

BIG TREND

The steady and often rapid development of large health care retailers is challenging for traditional health care organizations.

“The end result is that hospitals and healthcare systems are behind this transformation – in terms of geographic convenience, advanced supply chain, skilled workforce and marketing,” says Laura Kreofsky, vice president of strategy at Pivot. Point Consulting, a healthcare consulting company.

In May she told Health IT News that health systems need to move into a proactive stance where they have inherent competitive advantages that they can leverage in their digital transformation.

“CIOs and other leaders need to be more forward-thinking and ready to explore partnerships and platforms at a scale and speed that just two or three years ago seemed unimaginable,” she said.

IN RECORDING

“As these companies implement their respective strategies, they all share some common ambitious goals to help deliver more accessible, coordinated and accessible care,” the AHA researchers said in a new report.

Andrea Fox is a senior editor at Healthcare IT News.
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Healthcare IT News is a publication of HIMSS Media.