We just got a look at what Amazon's expansion into healthcare could look like — and it could wipe out a wave of smaller pharmacies

x by is licensed under x x
With its new pop-up stores, its takeover of Whole Foods, and its new interest in healthcare, Amazon seems to be staging a massive takeover of unsuspecting industries left and right.

Teaming up with JPMorgan and Berkshire Hathaway and acquiring the digital pharmacy startup PillPack are both a part of Amazon's expansion into various areas of healthcare.

Its bold move into healthcare raises the question of what's next — does it have a strategic step-by-step business plan underway to flesh out its recent conquests?

Bernstein analysts in a report this week said Amazon's next moves could include directly entering the online-pharmacy space, focusing on value-based care and population health management through its joint healthcare venture with JPMorgan and Berkshire Hathaway, and using Alexa to encourage consumer engagement and behavior modifications in digital health.

Analysts think Amazon's next steps with PillPack will be designed to improve user experience, scale up the operation, and get coverage from more health plans, including Medicaid coverage. Though Amazon and PillPack are expected to operate somewhat separately in the beginning, the e-commerce giant is likely to at some point integrate PillPack into its delivery model. Amazon is also likely to integrate Prime memberships into the online pharmacy.
x by is licensed under x x

Comments