Amazon Shaking up the Healthcare Industry
On Tuesday, Jan. 30, 2018 it was announced that Amazon, JPMorgan Chase, and Berkshire Hathaway are teaming up to enter the healthcare industry.
The move was made to improve health care for their employees by utilizing new technology that provides a more affordable, high-quality, and transparent healthcare service.
The effects of the partnership could transform the healthcare industry as we know it.
In less than a day after announcing, Amazon caused a $30 million drop in market value for 10 of the largest health insurance and pharmacy stocks in the world, including UnitedHealth, CVS, Cigna, Express Scripts, and Aetna to name a few.
The move could also affect the prescription drug business according to this article from CNBC. “Amazon could reduce costs by accepting lower margins than pharmacy benefit managers…Companies might also rethink – or even replace – their relationship with the pharmacy benefits manager.”
Furthermore, Amazon could look to revolutionize the warehousing, shipping, and delivering of drugs in a more cost-effective way, as they have done with the product side of their business.