The American health care industry is a beehive of activity, with players in the sector engaging in ingenious strategies aimed at “owning” the American health care consumer. CVS Health—an established retail pharmacy firm based in Rhode Island but with operations across America—announced in the last quarter of 2017 its intentions to acquire Aetna. Preliminary investigations suggest that CVS Heath would spend $69 billion to purchase the health insurance giant.
While CVS Health’s acquisition of Aetna might seem like a typical inorganic growth strategy, health care pundits view it from a different perspective. They suspect Amazon’s entry into the American health care industry prompted CVS Health to settle on increasing the number of its subsidiaries.
Amazon, an e-commerce and cloud computing company, had not shown interest in the health care sector until November 2017. In fact, the company’s current interest in the health care industry involving distribution of health-care-related equipment is still in its budding stage. Amazon is a respectable company known for its “marketing genius,” and companies in health care are wary of its presence in the health care sector. They foresee a situation where Amazon will seek additional licenses to play a greater role in health care, such as distributing prescription medications. If that is Amazon’s ultimate goal, CVS Health stands to face stiff competition.
CVS Health is putting its house in order, its primary objective being a one-stop shop for basic health care needs. The assumption is that health care consumers are less likely to relocate to a competitor if their current provider has most of their needs covered. For more details visit LinkedIn.
As CVS Health restructures in preparation for a showdown with Amazon, American health care consumers are delighted that Amazon is now part of the health care industry. They are particularly fascinated by Amazon’s established retail footprint, which cuts across America. The future is bright for health care consumers as many people stand to access health care services. Check out angel.co
Who is Drew Madden?
Drew Madden is a senior fellow at Evergreen Healthcare Partners, health care industry’s leading provider of electronic health records expertise. Madden also is a health care IT entrepreneur, fascinated by electronic medical records and how they can be used to improve the American health care industry.