By Pouria Sanae

Amazon is best known for playing a dominant role in disrupting the retail industry and revolutionizing the e-commerce marketplace. While “the Amazon Effect” came about in the retail industry, as the company grows, so does its reach and ability to shake up other industries – including healthcare. As the tech giant expands its healthcare arm of the business, rolling out hybrid health services nationwide, will “the Amazon Effect” force major changes in the healthcare industry too?

Why healthcare is attracting tech tycoons
Historically, Amazon zeros in on industries that present an opportunity to reform. Right now, the U.S. healthcare system is broken – expensive, wrought with disparities, lacking an emphasis on preventative care – and Amazon, other major tech players, and startups alike have taken notice. With the system ripe for change, companies that invest significant resources now could see a strong return as the health tech space booms. In fact, a McKinsey report estimates that up to $250 billion of U.S. healthcare spend could potentially be shifted to virtual or virtually enabled care.

Major and up-and-coming tech players are taking an interest in healthcare for a number of reasons – one being the immense size of the industry; the U.S healthcare market is valued at $3 Trillion. Healthcare impacts everyone, whether you currently have access to it or not. As the demand for more accessible and equitable healthcare services grows, so do the opportunities for those companies able to implement new processes and services that address the flaws in the existing system. As it stands, the healthcare industry is operating inefficiently for both patients and healthcare providers. The industry is lagging, and tech players see a clear path to digitize the space and address those inefficiencies.

Reinventing modern healthcare delivery to keep pace with consumerization
Patients are struggling to navigate a complex healthcare system. While other industries have adapted and become more consumer-focused over the years, the healthcare industry has failed to do so in a meaningful way. The current system in place is not meeting the needs of most Americans. From high costs to confusing health policies to geographical limitations, patients are facing more hurdles than ever when it comes to managing their health.

As the lines between patient and consumer are increasingly blurred, the need to pivot how healthcare is delivered in the U.S. has become apparent. The modern patient / consumer is asking for a system that puts them [the patient] first. The patient-centric models of healthcare Amazon and other companies are bringing to market are resonating with Americans. Healthcare is being delivered on patients’ terms – fitting consultations into their hectic schedules with options including telehealth appointments, digital platforms coordinating lab tests / results, chat capabilities, pharmaceutical deliveries and more. Healthcare interactions are transforming, and becoming increasingly similar to retail purchasing transactions. Consumer-facing health and technology brands are using the latest innovations to deliver the convenience consumers have come to expect from all aspects of life. Modern patients seek a modern healthcare experience.

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