Only One Will Rewrite The Rules Of Healthcare

So far, Big Tech has had a surprisingly small impact on US healthcare.

For example, artificial intelligence outperforms doctors in many complex tasks (such as reading mammograms and analyzing chest x-rays), but AI is still underutilized. Meanwhile, many companies have tried to use big data analytics to improve operational efficiency, but care delivery remains inconsistent and ineffective.Perhaps the best example of Big Tech’s struggles in healthcare: 9 out of 10 medical institutions still depend on him by fax machine To exchange important patient information.

Two tech giants are trying to change all that. And it’s about to capture a significant portion of his $4.1 trillion dollars that Americans spend on healthcare each year.

Their approach couldn’t be more different. One company adheres to the old unwritten rules of medical technology. Another is about to completely rewrite the healthcare rulebook.

First, the rule: It’s better to work with (rather than compete with) healthcare powerhouses

Most industries have used technology to disrupt or replace incumbents. That’s why ride-hailing apps have rocked the taxi industry, online booking sites have changed travel, and streaming platforms have beaten cable companies.

However, in healthcare, the safest and most reliable path to success is different. Tech companies make money by (a) keeping you safe and (b) getting along with hospitals, doctors, insurance companies, and pharmaceutical companies.

Apple: Playing Safe, Playing Well, and Profiting Beautifully

Late last month, Apple released a 59-page report called “Snapshot of Our Work to Promote Health.”It’s a big, bold announcement, and one that will take Apple to the next level. Leading force in healthcare.

Instead, critics called it a desperate ruse. In other words, a capricious attempt to convince shareholders that the company is not lagging behind its rivals.

The media backlash was swift and severe, with CEO Tim Cook announcing three years ago that Applegreatest contribution to mankind‘ would be health-related (a claim apparently lacking in the company’s nearly 60-page report).

Despite the lofty language of the report, there was no evidence to suggest that Apple was on its way to dramatically improving the health of Americans.

Take the Apple Heart Study, which aims to prove that the Apple Watch can accurately detect atrial fibrillation (AFib). This effort was a classic case of following the rules. Apple worked with a prestigious academic research partner (Stanford University), funded large-scale research projects, and took long PR win laps when the results came out.

Independent researchers were less impressed with the findings.uselessBecause of the study’s poor demographics, high dropout rate, and lack of follow-up.do more harm than goodAs for the clocks themselves, another study found that “only 13% of people later diagnosed with atrial fibrillation had previously been notified of an arrhythmia.”

To be clear, this watch may one day contribute to an increase in technology-based tools used to detect AFib and other medical conditions. Not the kind of contribution we promised years ago.

So far, the most frustrating thing about Apple’s modest deals in healthcare is knowing that Apple is capable of getting so much done. Especially for his 30% of US adults with two or more chronic conditions (diabetes, heart failure, hypertension, etc.), there are people, forces and products that will revolutionize health monitoring.

That population does not need another medical device that produces terabytes of health data (electrocardiogram, blood pressure readings, etc.). And the already overloaded doctors in that population definitely don’t want all that data clogging up their health records either.

What chronically ill patients need most is a device that tells them one of two things:

1. All right. This means that your measurements (heart rate, blood sugar, etc.) are within tolerances predetermined by your doctor.
2. you are not okay Something is wrong and you should contact your doctor immediately.

Powered by a combination of AI and algorithmic tools, this kind of technology could save thousands, possibly millions, of lives without overwhelming doctors. Apple hasn’t created it yet. The company then becomes a provider of healthcare. In that case, any error in measurement or analysis could expose Apple to significant medical legal risk.

Tim Cook knows that playing it safe and getting along with healthcare’s biggest players will guarantee future profitability. But Apple is willing to take risks to challenge the status quo. Until then, they are unlikely to make a meaningful contribution to the health of our country.

Amazon: ready to rewrite US healthcare rules

In the same week that Apple released its underwhelming report, Amazon announced its $3.9 billion acquisition of One Medical. One Medical is a membership-based primary care practice with locations in San Francisco, New York, and 23 other metro markets.

For Amazon, it’s the latest in a series of big moves that won’t “play along” with the existing forces in healthcare. In recent years, the world’s largest online retailer has launched its own pharmacies, its own telemedicine and emergency medical services, health tracking devices, health data departments, cloud-based medical record services, and its own set of neighborhood medical centers. rice field. Near employee hub.

As healthcare services grow, Amazon poses an increasing threat to pharmaceutical companies, hospitals, doctors, and insurance companies.

The company now seems intent on doing in healthcare what it did in retail.

Of course, critics are quick to point out that drugs aren’t retail. Healthcare is complicated and Amazon has already had to change course for him twice. First, Haven, a non-profit venture founded for employees of Amazon, Berkshire Hathaway and JPMorgan Chase, has dissolved after just three years. At the time, experts said the U.S. healthcare system was “too complex to interruptby Jeff Bezos and his billionaire pals.

disagree. I think Bezos’ vision for Haven (and healthcare) was much bigger and bolder than that of his executives.In fact, anyone who thinks Bezos’ end goal with Haven is to create a non-profit healthcare service just for his employees probably thinks he’s the one Amazon is sells only books.

Amazon’s other healthcare retreat took place last week, announcing that it will likely end its virtual care business later this year and transition to an expanded telemedicine service through One Medical.

For “new” healthcare entrants, including Amazon, the hardest part is achieving scale. Attracting new patients, hiring doctors and building clinics is expensive, difficult and time consuming.

With the acquisition of One Medical, Amazon has 188 clinics and 700,000 patients, as well as enough doctors and support staff to care for them. With $60 billion in cash on hand, the company can continue to scale rapidly over the next few years.

Bezos and his successor Andy Jassy understand that if Amazon can please patients as much as it pleases its current retail customers, healthcare chaos and dominance are within reach. In fact, if Amazon takes a customer service approach to healthcare, you can expect to bargain for the best prices on everything from medicines to doctor visits. It emphasizes cost and transparency of information, both of which are sorely lacking in healthcare today. There is also the possibility of introducing user feedback tools (e.g. 1 star to he 5 star product reviews).

There is also the potential for Amazon to create business synergies, bundling Prime membership with One Medical enrollment, and leveraging Amazon Web Services to bring telemedicine and patient data into the 21st century.

Still, for Amazon to succeed, it must continue to invest in growth and scale.

One to two million Amazon patients are not doing well. After all, the UnitedHealthcare Group has 70 million members, while Humana, the smallest of the ‘Big 5’ insurers, boasts 16 million.

With 5 million members, Amazon can turn One Medical from a loss leader (currently losing $240 million a year) to a profit center. With 10 million members, Amazon will be able to add specialists to One Medical’s current primary care-only model to enhance both care coordination and operational efficiency. With 50 million members, Amazon has the potential to become the nation’s No. 1 insurer and healthcare system, demanding lower costs for all parties including doctors, hospitals and pharmaceutical companies.

Ultimately, when Amazon can scale up and make healthcare as easy as the beloved one-click “Buy Now” feature, the company will give every player in the existing industry a boost. Become. And that would leave Big Tech rivals, including Apple, in the dust.