Earlier today Amazon, JP Morgan, and Berkshire Hathaway announced their ambition to build their own healthcare company.
The executives behind the new, unnamed coalition said they would create a company “free from profit-making incentives and constraints” to focus initially on “technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”
This is big news! In my perspective, this is also extraordinarily good news for the rest of us….
The future of healthcare services
These 3 companies are essentially setting out to build healthcare services from the ground up. Because of their massive size (roughly 1 million employees and market value ~1.6 billion), it would be expected that they should be able to overcome many of the barriers that today represent the same challenges for innovation. I expect them to be experimenting across multiple dimensions, experiments that are sorely needed and could catapult our existing healthcare marketplace forward. Likely it will change it completely!
What innovations may see?
No doubt technology will play a role. New Business Models for sure. New paradigms and existing ones that will be accelerated.
Technology and assets that will be leveraged
Technology will be foundational. The consortium will take advantage of its existing massive infrastructure, knowledge and massive expertise in innovation across industries to produce interesting new value propositions, both for its users and the potential businesses.
Technology will be used to innovate across the different customer journeys / job-to-be-done’s, including:
- leveraging tech such as AI/ML with gamification type scenarios for prevention. This lowers total cost of treatment and secures engagement around the business model.
- Leveraging various modalities, including mobile and wearables, for earlier diagnosis and throughout care.
- Leveraging cloud and an ecosystem of solutions and partners, with intelligence built in, to match the right provider to the right patient.
- Blockchain for ensuring that this massive ecosystem is self-sustained and optimized, with data stored and accessible when needed.
- Accelerated use of Robo-Doctor concepts and leveraging ML/AI across the lifecycle o the patient
- Alexa playing a central role as an interface between the patient, caregivers, family and other stakeholders
- A definite increase in the value of wearables across the consumption of healthcare services
- Remote services, i.e. telemedicine type services live and asynchronous, leveraging cloud and communications infrastructure
- Creating transparency, from quality to the outcome to cost
New Business Model Innovation and paradigm changes
The 3 parties are able to overcome many of the barriers that are current constraints for innovation. This should liberate new ideas that can provide value.
What might be possible
- access to emerging treatments before fully approved through usual FDA process, perhaps via opt-in structures and program specific elements
- higher degrees of co-creation, including possibly specialized medicine initiatives
- outcome based models vs in/out of network paradigms
- leveraging global options across the value chain
- insurance provided as a new model
There are many new opportunities, too many to mention.
Unique capabilities of the partnership
The 3 parties will be able to use their enormous resources, including:
- Amazon’s Mechanical Turk for data entry and supporting services to the
- Customer services for supporting their patients
- AWS for storage
- The partner ecosystem and know how to build out the full solution
JP Morgan can leverage financial engineering to engineer new models for funding.
I am not completely clear on Berkshire, however, it may relate to their expertise in insurance and the significant reach across industries.
One point is clear: The 3 captains of industry are out to change the world and they’ve chosen an area so massive and ripe for innovation that it will be easy to notice!
I wish them luck and will follow the journey carefully.