Eighteen per cent of the GDP of the United States comes from health care therefore a company as big as Amazon thinks it would be their next venture to further expand their reach. There are signs everywhere such as the decision of the company to enter the pharmaceutical distribution market or the latest announcement that it will be partnering with JP Morgan Chase as well as Berkshire Hathaway in order to develop joint solutions that will help over 1 million of their workers including their families by reducing the amount they spend on health care. With the improvement in the field using cloud based technology in healthcare, the tech company is the perfect fit to venture into it.
These decisions made by the company have given rise to various debates. Advocates said that the move is innovative because it is a chance for the company to diversify since it has been aiming to be a company that treats their customers as the center. On the other hand, skeptics are focusing on the fact that Amazon is a newbie when it comes to the healthcare industry which is a market that is considered to be resistant when it comes to competition. Amazon is successful in the retail as well as web services despite the competitive nature.
The partnership made by Amazon with JP Morgan Chase and Berkshire Hathaway would benefit greatly the purchasing power of thee huge companies, therefore, they can create advance insurance models. Perhaps the biggest development that these three will bring is the way healthcare is provided to patients which is better than before.
In the e-commerce sector, Amazon has made big changes with Amazon Prime which gives customers the chance to order items they need without having to pay shipping every time. Instead, they pay a fixed annual amount. Another breakthrough provided by Amazon is the same-day shipping of groceries through AmazonFresh. The company’s expertise in these sectors can be translated into health care in order to provide patients with reliable but seamless transactions.
The ability of Amazon to solve problems within the organization and how they operate is one reason that health care will have a better future. For now, cloud based technology in healthcare is only taking off and with Amazon’s expertise in cloud computing, this could be taken into another level.