Saturday, January 28, 2023

Amazon is just starting its race to become a healthcare giant: 3 acquisitions it could make next year

Amazon has been trying to break into the healthcare sector for years.

In 2022, the retail giant made waves, and analysts expect it to continue making waves next year.

The company bought primary care provider One Medical in July for $3.9 billion (over €3.6 billion), demonstrating Amazon’s commitment to its healthcare business in one of its largest acquisitions in history.

The following month, it suddenly announced it was shutting down Amazon Care, its app-based primary care service for businesses, 3 years after it launched.

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In November, Amazon launched Amazon Clinics, a virtual service where patients can pay Amazon directly to receive treatment for common conditions such as allergies and acne. Natalie Schiebel, Forrester’s vice president and chief research officer, then said that it was a sign that Amazon had learned from its mistakes at Amazon Care.

,they are moving fast“, Schiebel analyzed. “The shutdown of Amazon Care was not a sign of failure, it was a strategic move to go direct to consumer.”

Amazon is now in a position to continue building out its healthcare business. Experts believe the company may try to close deals in 3 key areas over the next year, including behavioral health and chronic care, to keep up its momentum.

amazon has answered business Insider He prefers not to comment on rumors or speculations.

mental health

Experts say adding mental health services to Amazon’s newly acquired primary care business could be a natural next step for the company business Insider, In fact, Amazon already had plans to dive into the mental health market this year.

Amazon’s original idea was to provide on-demand access to therapists and psychotherapists employed directly by the company and in partnership with behavioral health provider Ginger, which merged with Headspace in 2021.

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The shutdown of Amazon Care put the company on hold in those mental health ambitions. Stephanie Davis, research analyst at SVB Securities, points out that she thought Amazon would have to make at least one acquisition for that company to be successful.

,They have the off-putting factor of a therapist being treated as someone who works directly for Amazon. versus working for a well-known brand with whom patients have a positive, trusted association,” he says.

Both Schiebel and Davis think Amazon will look to a company that sells mental health services directly to consumers, since that’s where the retail giant has historically excelled.

The acquisition of Neuroflow, a startup that makes software to integrate mental health care into primary care, could allow Amazon to automate some aspects of mental health care, said Alexander Lenox, principal analyst at CB Insights in Health IT. Miller explains.

NeuroFlow’s platform features clinical decision support tools for providers and assists patients with automated monitoring and self-care activities. Neuroflow has preferred not to comment.

With its hundreds of millions of customers across its businesses, Amazon has access to countless health-related data points it can use for its healthcare business, Schiebel considers.

In his opinion, Amazon Web Services Healthcare Solutions, which offer cloud services that can help healthcare organizations with tasks such as extracting data from medical text and building machine learning models, will be Amazon’s starting point.

“They can take advantage of dozens of AWS data centers and eventually shift their interest toward value-based health care,” says Schibel. “It’s a matter of scaling up responsibly across the country and fighting off some fierce competitors.”

Lennox-Miller points out that Amazon could buy healthcare data startups in which the company already invested, such as healthcare equity-focused Harmony Health or Clinify Health, a value-added healthcare data company. Harmony Health and Clinify Health also declined to comment.

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Tanto Harmony Health as Cleanify Health There are tools that can turn over the massive amounts of data Amazon already hasJoe Lennox-Miller believes that could be the sales pitch for the retail company.

“What they really need is the ability to synthesize healthcare data into meaningful metrics and data sets,” says Lennox-Miller.

Or, if Amazon wants to make a big buy, imagine Lennox-Miller, it could go after HealthCatalyst, a healthcare analytics company that went public in 2019.

chronic care

Schiebel and Lennox-Miller predict that Amazon could try to crack the US chronic care market, worth $3.2 billion next year, by building its own specialized care services for these types of conditions.

Amazon’s most recent purchase, One Medical, already has some sick care services. They use a care-based approach to treat conditions such as diabetes and heart disease.

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Lennox-Miller predicts that Amazon could go after Bioformis, which uses artificial intelligence-powered software to treat various chronic conditions from home as well as remote patient monitoring technology for acute and post-acute care.

“They have a combination of aged care services and their equipment,” Lennox-Miller said. “If Amazon was going in the direction of one of their big buyers, that’s what they would see.”

Kuldeep Singh Rajput, CEO of Bioformis explains business Insider The startup is taking steps to go public in the next 2-3 years, though he also clarifies that the company will consider any acquisition offers.

“If an opportunity arises to establish a strategic partnership that allows us to accelerate our growth and reach the same number of patients, we will certainly look at it,” he says. “In the short term, we are focused on growing the business.”

Schiebel agrees that Amazon has potential Go Beyond One Medical Primary Care Services Next year to delve into specialized care.

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Schiebel says its main challenge will be expanding nationwide, replacing what it has been able to do with virtual care in physical locations.

That’s where Walmart, Amazon’s biggest retail competitor, has thousands of stores, many in rural areas with sick populations where access to care has been reduced.

Nation World News Desk
Nation World News Desk
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