Becker's Hospital Review

March 2018 Hospital Review

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48 48 CEO/STRATEGY All of Amazon's Health Moves Before the JPMorgan Chase-Berkshire Hathaway Deal By Julie Spitzer A mazon, JPMorgan Chase and Berk- shire Hathaway entered the health- care arena on Jan. 30 with their col- laboration on a new company designed to cut healthcare costs for their U.S. employees. is move has been a long time coming for Amazon, which has increased its involve- ment in healthcare-related ventures over the last few years, leaving multiple media outlets to speculate about a potential healthcare in- dustry entrance. Here is a breakdown of Amazon's healthcare ventures, investments and hirings reported by Becker's Hospital Review since mid-2016. April 2016. Amazon equipped its voice com- mand-based assistant Alexa to offer health advice in a partnership with Boston Chil- dren's Hospital. Over the next few months, Amazon rolls out more Alexa-based health services, including first aid assistance through a partnership with Rochester, Minn.-based Mayo Clinic. July 2016. e American Heart Association and Amazon Web Services — the e-com- merce giant's cloud business — formed a strategic collaboration to enhance the AHA's Institute for Precision Cardiovascular Medi- cine. November 2016. Amazon CEO Jeff Bezos provided investments in the anti-aging San Francisco-based startup Unity Biotechnology through Bezos Expeditions. March 2017. Amazon linked up with Web- MD to provide physician-reviewed answers to health-related questions asked through Amazon Alexa. April 2017. Amazon and Merck unveiled the Alexa Diabetes Challenge to explore how voice-command technology can support chronic disease management. May 2017. CNBC highlighted Amazon's ef- forts to expand its drug and medical supply distribution by hiring more leaders from the pharmaceutical industry and offering direct shipment of medical supplies to U.S. custom- ers. June 16, 2017. Amazon acquired Whole Foods, and some speculated the $13.7 billion purchase could move the company closer to the pharmacy market. June 28, 2017. Teva Pharmaceutical Interim President and CEO Yitzhak Peterburg, MD, said the global healthcare industry is facing a "huge disruption" from the technology sector, specifically citing the "Amazons and Googles." July 10, 2017. Becker's reported that John Brownstein, PhD, professor of pediatrics at Boston-based Harvard Medical School and chief innovation officer at Boston Children's Hospital, has worked with a variety of tech gi- ants — including Amazon and Uber — to roll out digital health applications. July 20, 2017. e tech giant reportedly hired Missy Krasner, a healthcare executive from the cloud-based file sharing service Box, sug- gesting the company's growing investment in digital health. July 27, 2017. Becker's reported Amazon has a secret healthcare team exploring new tech- nology opportunities in healthcare, including both hardware and soware projects. e group, called 1942, is also reportedly explor- ing building a platform for telemedicine and health applications on Amazon hardware, in- cluding its Echo and Dash Wand. Aug. 8, 2017. During a second-quarter earn- ings call Aug. 8, Woonsocket, R.I.-based CVS Health President and CEO Larry Merlo warned the "barriers to entry are high" for companies like Amazon that may be looking to move into the pharmacy business. Aug. 9, 2017. An informal CNBC poll con- ducted on Twitter showed people trust Apple (41 percent) more than Amazon (8 percent) with their health data. Aug. 15, 2017. CNBC speculates that Ama- zon's new pickup points in the U.S. could help shoppers quickly access prescriptions. Aug. 24, 2017. Two former Amazon leaders, who have since transitioned to roles in the healthcare sector, said they believe the com- pany has real potential to disrupt the health- care industry. Sept. 7, 2017. Amazon announced plans to invest more than $5 billion into a second company headquarters in North America that will include as many as 50,000 high-pay- ing jobs. More than 238 cities submitted pro- posals. Sept. 20, 2017. e tech giant reportedly be- gan talks with pharmacy benefit managers about potential drug contracts. Sept. 25, 2017. CNBC notes Amazon's Alexa is not HIPAA compliant. Oct. 3, 2017. One Kansas-based family phy- sician, Josh Umbehr, MD, told CNBC he has sent dozens of emails to Amazon's CEO Jeff Bezos, urging him to direct the company to- ward the prescription drug market. Oct. 17, 2017. e National Health IT Col- laborative for the Underserved, a public-pri- vate partnership founded in 2008, launched the NHIT Care Campaign to bring healthcare resources — including an open-source EMR — to Puerto Rico in the aermath of Hurri- cane Maria. Along with PwC, partners in the campaign include Amazon Web Services, Health Gorilla and Williams Medical Tech- nology, among other organizations. Oct. 17, 2017. Minnetonka, Minn.-based UnitedHealth Group said it sees Amazon as a potential partner rather than a competitor in the pharmaceutical business. Oct. 27, 2017. Amazon has slowly acquired more than 10 wholesale pharmacy licenses from state boards over 2017, fueling rumors over the retailer's potential entrance into the pharmaceutical supply chain. Nov. 13, 2017. e company claimed it will use its pharmacy licenses in Tennessee and Indiana to sell medical devices and supplies instead of prescriptions. Nov. 15, 2017. Bayer, the Leverkusen, Ger- many-based drugmaker, tapped the head of Nestlé 's baby food business, Heiko Schipper, in an effort to boost its consumer health reve- nue, which has been on the decline as buyers increasingly turn to online retailers like Am- azon. Nov. 22, 2017. Amazon Web Services was re- portedly planning to announce a partnership with the North Kansas City, Mo.-based EHR vendor Cerner, but no news of the partner- ship has been discussed since. Nov. 30, 2017. Amazon has reportedly held preliminary discussions with several generic drug manufacturers — including Mylan and Novartis — regarding the company's poten- tial foray into the pharmacy business.

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