There is great discussion within the health care industry about whether the recent decision by Amazon to obtain its pharmaceutical license for medical supplies will create a threat to companies like CVS and take away its health care customers.
In an attempt to gain some type of leverage on the health care industry, Amazon applied for licenses in 12 states including Nevada, Arizona, Alabama, North Dakota, Louisiana, New Jersey, New Hampshire, Michigan, Oregon, Connecticut, Idaho and Tennessee, receiving approval for all applications. An application that was submitted in Maine was withdrawn by the company, leaving even more industry speculation since Maine does not require a medical supply license.
CVS recently made an agreement to purchase Aetna Healthcare for $69 billion that was approved by the board of directors, making it the largest corporate acquisition in 2017. The deal will include cash and stock payments. Shareholders within Aetna will have 22 percent owner stock when the companies combine and receive approximately $145 per share.
CVS is the most-known pharmacy within neighborhoods around the country. However, Amazon could easily take another leap forward and apply for a license for filling prescriptions. This would put pressure on CVS to ramp up its efforts to bring more consumers to its retail-based health clinics. In 2006, CVS began serving customers with common illnesses through its MinuteClinic, which has put them in a wider range for access to customers needing care. The clinic, pharmacy, durable medical equipment and medical supplies as well as household supplies create a one-stop convenience for customers.
With Amazon’s potential for gaining a health care customer relationship, the industry is being forced to pivot towards actions that keep their health care customer base. Amazon’s mere presence within the health care industry elevates the inventiveness of companies like CVS. Consumers are becoming increasingly more used to Amazon being an “all-inclusive company” and will welcome an element of change that can help them take more charge of their health. See This Article for related information.
Drew Madden is one of the key figures who have made a difference in Healthcare IT industry.
Drew Madden is a Healthcare IT consultant and entrepreneur. As the former President of Nordic Consulting Partners, Drew Madden led the firm to achieve $130 million in revenue by the end of his tenure in 2016. He worked with the nation’s largest health care provider, United Healthcare, as a lead consultant for its former subsidiary company, Ingenix- now nationally known as OptumInsight. Drew graduated from the University of Iowa College of Engineering, focusing on medical systems technology.