Incumbents Disrupting Incumbents: Why Tech Giants Are Ready To Take On Provider Territory
- Life Sciences & Healthcare
In previous articles, we outlined why tech giants would enter the healthcare market and some of the implications for insurance companies. Now, let’s pivot our focus to another set of incumbents in the healthcare ecosystem ripe for disruption: providers.
Today’s providers face a complex list of challenges, necessitating a very deliberate and thoughtful reexamination of essentially all aspects of care-giving. Navigating the frenetic pace of digital innovation, handling the growing financial pressures from insurers and the government, and managing the ever-increasing patient expectations for transparency, education, information and personalization are just a few of the major headaches keeping provider executives up at night. Many providers are acknowledging that they simply do not possess the capabilities required to address these issues, such as artificial intelligence, user experience and platform engineering. Additionally, transforming these deeply entrenched organizations to focus on these areas is a herculean effort in its own right. That being said, achieving a credible value proposition in healthcare, specifically on the provider side, can be very daunting given the industry depth required, complex regulatory environment, and the fact that the public is extremely risk-adverse when it comes to the healthcare industry. So, how will tech giants make a realistic foray into this territory? They will buy their way in.
Let's start by understanding why tech giants would enter the provider space. First, it provides direct access to a clinical setting, and therefore, to end users. The direct connection itself to patients isn't as much of a concern, as tech giants already have well-established relationships with end users through phones, tablets, platforms, services and more. Rather, tech giants are more so interested in gaining insight around the unique stresses, challenges, logistics and emotions to deliver far superior experiences. Apple, an icon of product design, has clearly signaled its interest in leveraging its expertise to deliver engaging user experiences in healthcare by creating their first FDA-approved medical device, the Apple Watch 4. Apple’s new product shows that not only can medical devices be dramatically improved, but there’s also an opportunity to enhance the entire process from identification to diagnosis to treatment and monitoring.
Second, there is immense value for tech giants to extend their platforms and increase product stickiness. To better illustrate this point, let's take a simplistic look at the potential with Amazon's platform. As a Prime member, users would take comfort in a more seamless experience. A ‘Prime hospital,’ for example, would have patient medical records and prescription information, and medications could be delivered by Amazon via PillPack along with their medical devices. Patients would have full visibility of all costs for upcoming appointments or hospital stays, which would be covered by Prime insurance that’s bundled into a Prime account. Alexa can follow patients to the hospital, which is great because she is wonderful at reminding people to take the right amount of medications at the right time. Alexa also knows user preferences for entertainment on Prime video, so users can catch up on their favorite shows while they recover. Additionally, many hospitals currently run services on AWS, which reduces IT spend and increases interoperability across physicians, specialists, nurses and caregivers.
Finally, having the ability to combine clinical data with artificial intelligence will be a game changer. With this expertise already baked in, tech giants can take advantage of the vast opportunities for new services and products not only in healthcare, but with many ancillary and supporting industries as well. Google, whose mission is to organize the world’s information and make it universally accessible and useful, is extremely well-positioned to capitalize on this data explosion. In fact, we’ve already seen a small glimpse of this potential for clinical applications, from predictions of inpatient death to automating the diagnosis of eye scans for over 50 eye diseases. As more provider data is collected, the possibilities to revolutionize healthcare are almost limitless.
So what could the healthcare landscape look like? Are tech giants considering investment or acquisition? The answer is both. Investments and partnerships with name brands in medicine, such as Cleveland Clinic, Mayo Clinic and Memorial Sloan Kettering, make sense for tech giants as those organizations have credible brands with a long history in the industry. However, with over 6,000 hospitals in the US, there is a significant amount of care being delivered by lesser-known providers, many of which are operating at losses or barely breaking even. For these hospitals, it may make sense for an outright purchase to provide complete control for the tech giant. With the possibility of investing and partnering between tech giants and existing providers, we can expect to jumpstart to the next significant phase of healthcare disruption – combining payers and providers. While there are a few notable payer/provider combinations already (like Kaiser Permanente and Geisinger), the tech giants will have great advantages, not the least of which is their almost endless (and patient) capital.
Hello. How Can We Help You?
-
BECOME A CUSTOMER
+1-267-759-9000
-
JOIN OUR TEAM
+1-267-759-9000
-
SEND A MEDIA INQUIRY
+1-267-978-7688
-
BECOME AN INVESTOR
+1-267-759-9000 x 59419
-
ASK US ANYTHING
+1-267-759-9000
Our Offices
-
Canada
-
Mexico
-
Guadalajara
MapPeriférico Sur #8110,
Col. El Mante
45609 Tlaquepaque, Jalisco
MexicoP: +52-33-462-400-98
-
-
United States
-
Newtown, PA
Map41 University Drive,
Suite 202,
Newtown, PA 18940
USAP: +1-267-759-9000F: +1-267-759-8989 -
Bellevue, WA
Map110 110th Ave. NE,
Suite 310
Bellevue, WA 98004
USA -
Boston, MA
Map21 Drydock Avenue,
Suite 410 W,
Boston, MA 02210
USA -
Conshohocken, PA
Map101 East 8th Ave,
Suite 201,
Conshohocken, PA 19428
USAP: +1-484-382-1300 -
Los Angeles, CA
Map11601 Wilshire Blvd,
Suite 350,
Los Angeles, CA 90025
USA
-
Mountain View, CA
Map465 Fairchild Dr,
Building B,
Suite 221,
Mountain View, CA 94043
USA -
New York, NY
Map24 West 25th Street,
5th Floor,
New York, NY 10010
USAP: +1-267-759-9000F: +1-267-759-8989 -
Philadelphia, PA
Map30 South 15th Street,
9th Floor,
Philadelphia, PA 19102
USA -
San Francisco, CA
Map222 Kearny Street,
Suite 308,
San Francisco, CA 94108
USA -
Washington D.C.
Map7901 Jones Branch Drive,
Suite 400,
McLean, VA 22102
USA
-
-
Austria
-
Vienna
MapNottendorfer Gasse 11,
1030 Wien
Austria
-
-
Bulgaria
-
Sofia
Map69 Bulgaria Blvd.,
Infinity Tower,
1404 Sofia
BulgariaP: +359-700-20-273
-
-
Czech Republic
-
Prague
MapCity Tower building,
Hvezdova 2b,
Prague 4
Czech RepublicP: +420 22 888 28 23
-
-
Germany
-
Frankfurt am Main
MapFranklinstrasse 56,
60486 Frankfurt am Main,
GermanyP: +49-69-31019090
-
-
Hungary
-
Ireland
-
Dublin
MapAlexandra House,
The Sweepstakes,
Ballsbridge, Dublin 4,
D04 C7H2
IrelandP: +353-(0)-1-631-9280
-
-
Netherlands
-
Poland
-
Gdańsk
MapAl. Grunwaldzka 472E
80-309 Gdańsk
Poland -
Katowice
MapChorzowska Str. 148
40-101 Katowice
PolandP: +48-12-222-02-02 -
Krakow
MapOpolska Str. 114
31-323 Kraków
PolandP: +48-12-222-02-02 -
Warsaw
Mapul. Grzybowska 62
Browary Warszawskie, building J, 9th floor
00-844 Warszawa
Poland -
Wroclaw
MapUl. Piotra Skargi 1,
Budynek A,
50-082 Wrocław
Poland
-
-
Spain
-
Malaga
MapAv. Imperio Argentina, 19-21,
2º Planta,
29004 Málaga,
España
-
-
Sweden
-
Switzerland
-
Glattpark
MapBoulevard Lilienthal 2,
8152 Glattpark (Opfikon)
SwitzerlandP: +41-43-500-21-49
-
-
Ukraine
-
Dnipro
Map17A Volodymyra Monomaha Street,
49000 Dnipro
UkraineP: +380-56-790-5651 -
Kharkiv
Map33G 23 Serpnya Street,
61072 Kharkiv
UkraineP: +380-57-728-06-22 -
Kyiv: Registered office
Map28 Fizkultury Street,
03150 Kyiv
Ukraine
P: +380-44-390-5457F: +380-44-390-0861 -
Kyiv: Visitors office
Map14B Kudryashova Street,
03035 Kyiv
Ukraine
P: +380-44-390-5457 -
Lviv
Map45 O.Stepanivny Street,
79018 Lviv
UkraineP: +380-32-242-4642F: +380-44-390-5458 -
Vinnytsia
Map51 Ovodova Street,
21000 Vinnytsia
UkraineP: +380-432-551-294 +380-432-551-275F: +380-432-551-293
-
-
United Kingdom
-
Australia
-
Sydney
MapLevel 19, 68 Pitt Street,
Sydney, NSW, 2000,
AustraliaP: +61-28-310-82-72
-
-
China
-
Guangzhou
MapUnit B01, 23/F,
Yuexiuxinduhui Building,
No. 236, 6th Zhongshan Road,
Yuexiu District, Guangzhou,
China 510180 -
Shanghai
MapRoom B509, 5th Floor,
48 Weihai Road,
Huangpu District, Shanghai,
China 200000P: +86-21-53080606 -
Shenzhen
Map3/F, Block 5, Vision Shenzhen Business Park,
9th Gaoxin South Road,
Shenzhen Hi-tech Industrial Park,
Nanshan District, Shenzhen,
Guangdong, China 518057
P: +86-755-36899008 -
Suzhou
MapBuilding 12, Creative Industrial Park,
328 Xinghu Street,
Suzhou Industrial Park,
Suzhou, China 215123
-
-
Hong Kong
-
Hong Kong
Map198 Wellington Street,
17F, Central
Hong KongP: +852-5808-6018
-
-
India
-
Bangalore
MapSmartworks,
Global Technology Park,
Block C, Outer Ring Rd,
Adarsh Palm Retreat, Bellandur,
Bengaluru, Karnataka 560103
India -
Hyderabad
Map10, 11 & 12th Floors,
Salarpuria Sattva Knowledge City,
Plot No. 2, Phase - 1,
Survey No. 83/1,
Raidurgam Village,
Serilingampally Mandal,
Hyderabad, Telangana - 500081
IndiaP: +91-40-47979900 -
Pune
MapSmartWork Business Center Pvt Ltd,
Suite 8, Level 1,
West Wing, Nyati Unitree,
Samrat Ashok Road,
Yerwada, Pune - 411006,
Maharashtra
IndiaP: +91-20-4913-6025
-
-
Japan
-
Tokyo
MapFloor 1-10-11
Shibadaimon Centre Building 10th
Shibadaimon Minato-ku
Tokyo 105-0012
JapanP: +81-03-6880-9198F: +81-03-6880-9201
-
-
Singapore
-
Singapore
Map5 Shenton Way
UIC Building, #10-01,
Singapore (068808)P: +65-6911-6888
-
-
United Arab Emirates
-
Dubai
MapEPAM Systems FZ-LLC Dubai Branch
2307 Arenco Tower, Dubai Media City
PO Box 501929 Dubai
United Arab EmiratesP: +971-4-568-3569
-
-
Armenia
-
Yerevan
Map15 Khorenatsi Street,
Elite Plaza Business Center,
0010 Yerevan
ArmeniaP: +374-10-60-00-65
-
-
Belarus
-
Brest
Map6A Masherov Avenue,
224030 Brest
BelarusP: +375-162-52-5268F: +375-162-50-9888 -
Gomel
Map80 Rechitsky Avenue,
246012 Gomel
BelarusP: +375-17-389-0100, ext. 54079F: +375-232-70-50-31 -
Grodno
Map87B Gorkogo Street,
230005 Grodno
BelarusP: +375-17-389-0100, ext. 69011 -
Minsk
Map1/1 Academician Kuprevich Street,
Suite 110,
220141 Minsk
BelarusP: +375-17-389-0100F: +375-17-268-6699 -
Mogilev
Map19 Cosmonaut Street,
Suite 510,
212009 Mogilev
BelarusP: +375-17-389-0100, ext. 1001 -
Vitebsk
Map11-a Stroitelei Avenue,
Suite 311,
210032 Vitebsk
BelarusP: +375-17-389-0100, ext. 54433
-
-
Kazakhstan
-
Russia
-
Moscow
Map9th Radialnaya Street,
Building 2,
115404 Moscow
RussiaP: +7-495-730-6362F: +7-495-730-6361 -
Izhevsk
Map150 V. Sivkova Street,
426000 Izhevsk
RussiaP: +7-3412-27-13-37 -
Nizhny Novgorod
Map30 Poltavskaya Street
603089 Nizhny Novgorod
Russia
-
Ryazan
Map16 Gogolya Street,
390035 Ryazan
RussiaP: +7-4912-55-99-10 -
Saint Petersburg
Map22/2 Zastavskaya Street,
MegaPark,
196084 Saint Petersburg
RussiaP: +7-812-611-1094F: +7-812-611-1094 -
Samara
Map21 Michurina Street,
443110 Samara
RussiaP: +7-846-200-0970 -
Saratov
Map37 Tankistov Street,
410019 Saratov
RussiaP: +7-8452-692-981 -
Sergiev Posad
Map7 Akademika Silina Street,
141313 Sergiev Posad
RussiaP: +7-496-547-11-39F: +7-496-547-11-39 -
Togliatti
Map31E Yubileynaya Street,
445037 Togliatti
RussiaP: +7-495-730-6360, ext. 47650 -
Tver
Map8 Kolodkina Street,
170002 Tver
RussiaP: +7-4822-630-070 +7-4822-630-071 +7-4822-630-072F: +7-4822-630-073
-