Venture Beat recently published an article by Stephen Kraus entitled “CVS and Amazon Battle to Own the Healthcare Consumer”. Kraus leads the Bessemer Venture Partner’s healthcare investing strategies. He is also on the board of Allena Pharmaceuticals, Alcresta, Bright Health, Health Essentials, and Docent Health.
The article details the recent battle between Amazon and CVS over the consumer cycle of healthcare. The two companies have recently been garnering attention after CVS was revealed to be interested in buying the health insurance company, Aetna. Amazon has also been shown buying pharmacy licenses in a variety of states across the U.S., though the licenses are focused on transporting healthcare equipment, not the transportation of prescription drugs. However, Amazon is likely trying to get these licenses to improve their sales.
Kraus reveals that this is a detailed strategy on the part of both companies. Amazon may dive into selling pharmaceuticals and disrupt the entire market. The company has been known to do so before, with an ability to completely disrupt markets like Whole Foods, essentially erasing the competition. If Amazon does obtain the licenses, they would become a huge competitor in the pharmaceutical field.
CVS has been a player in the pharmaceutical industry for a long time. They might also be trying a defensive strategy to protect its profits against Amazon, as it has been revealed that they are going to provide delivery for prescriptions. These companies are seeking to own the entire process of health care, from insurance to care to medication. CVS is already on the trail by trying to provide routine care and pharmacy services, and now they are also trying to buy the healthcare insurance.
Drew Madden as a managing partner at Evergreen Healthcare Partners, a healthcare IT company that helps companies integrate technology into their healthcare practices. He has worked in Healthcare technology since 2010 when he went to work for Nordic Consulting Partners. He quickly became president in 2011. He served as President of the company for five years until 2016. Through his leadership, the company grew to 725 employees and obtained more than $130 million in annual revenue.Posted by hiphopShawn on .