The year 2018 witnessed important changes in every sector. But, Amazon's announcement to spread its wings to the healthcare sector stunned the entire business world. Experts are thinking that Amazon would change the whole healthcare sector by investing in it.
Amazon has been selling healthcare products and medicine for years, and it had partnerships with some of the largest distributors of the U.S. Amazon announced a partnership with Berkshire Hathaway and JPMorgan Chase to reduce the healthcare cost of its U.S. employees. This announcement has not failed to cast an impression on the market. This decision is going to change the present scenario. Amazon has declared this initiative to cater better healthcare service at a reasonable price. These three companies hold more than 1.1 million employees together. This new initiative will facilitate the use of proper technology for the advancement of healthcare service.
Amazon is trying to introduce new traits to its voice technology. It signed a partnership with Merck. Previously, they had announced Alexa Diabetes Challenge which offered a grand prize of $125,000 for the winner. The purpose of the challenge was to encourage the developers to use the voice-recognition software for the treatment of diabetes. Companies like Alphabet and Apple had also tried to address the problem of diabetes.
Change Healthcare and Amazon has announced a partnership to refurbish the cloud-based claims and payment methods. Amazon wants to use the voice-assistant to keep the connection between patients and the healthcare providers. CNBC reports are saying that Amazon’s partnership with Omron Healthcare will enable Alexa to measure blood pressure.
Amazon’s announcement to enter healthcare has had manifold effects on the market. When the news was announced, it messed up healthcare stocks. The iShares U.S. Healthcare ETF, UnitedHealth Group, and CVS Health witnessed fall on the very day of its announcement. Amazon has acquired Pillpack. This acquisition will enable the customers to use the existing platforms to shop based on price. Amazon’s arrival in healthcare will oblige the current companies to refurbish their technology because Amazon will provide technology-based and cost-effective solutions.