Hospitals and health systems must rethink partnerships and digital infrastructure to remain competitive with retail and tech disruptors like Amazon, CVS and Google.
In its August 2020 COVID-19 Digital Insight Series Industry Consolidation – Disruptors report, Renton, Wash.-based Providence examines some of the consolidation activities in healthcare led by tech-enabled retail, pure play and big tech disruptors.
"While tech and retail companies have been actively positioning their portfolios to deliver health services for several years, the [COVID-19] crisis has accelerated their strategies and growth opportunities while likely stalling growth initiatives of incumbent provider organizations."
Here are some examples of some of the biggest consolidators disrupting the healthcare market as well as their strategic focuses and targets, according to the report.
1. Tech-enabled retail disruption (Walgreens, CVS, Walmart and Amazon): These consolidators want to own and maintain customer relationships by delivering convenient and affordable low-acuity care. Their targets are low acuity providers, virtual platforms and pharmaceutical services.
2. Health tech pure-play disruptors (Teladoc, One Medical, Welltok): The strategy of these consolidators is to focus on providing care through low-cost and convenient channels, such as virtual platforms. Some disease management platforms focus on collecting meaningful health data to drive outcomes, while other platforms have been successful in partnering to deliver tech-enabled customer centric services. Their targets are cross category consolidations or adjacent peers.
3. Big tech disruption (Google, Apple and Microsoft): These consolidators aim to develop a healthcare ecosystem through tech enablers and digital platforms. Their targets are partnerships with health systems and payers and niche startups.
Click here to view the full report.