Health Industry Had Been Long-Stagnant But High Costs Plus Mediocre Access Have Triggered Shake-Ups
Amazon, Berkshire Hathaway and JPMorgan's new initiative to disrupt the health landscape is just the latest in a string of recent moves that have sought innovative and outside-the-box partnerships to try to do something about high costs in the industry.
Disrupted: American Healthcare Has Reached Its Tipping Point
American healthcare has reached a tipping point. Look no further for proof than the insiders and outsiders who are linking up to disrupt the long-stagnant, cost-ridden industry that's eating up nearly a fifth of the nation's gross domestic product. E-commerce giant Amazon is partnering with JPMorgan Chase and Warren Buffett's Berkshire Hathaway to take a bite out of employer healthcare spending. CVS Health and Aetna are combining to offer cheaper, more convenient access to care and services. Apple is working with hospitals and technology vendors to put medical records in the palms of patients' hands. And four major health systems last month stepped into pharma territory with plans to launch a not-for-profit generic-drug company. (Kacik and Livingston, 2/3)
In other industry news —
Cutting Links Out Of The Healthcare Supply Chain
When Baylor Scott & White realized that it was paying more than its peers for certain equipment and supplies, the numbers just didn't add up. The Dallas-based system relied on data benchmarking tools to see how much it paid for products used in various service lines, such as artificial hips and knees. The organization found that it sometimes paid more than average, and as a large system—the largest not-for-profit in Texas—that should not be the case, said Tony Johnson, senior vice president and chief supply chain officer. (Kacik, 2/3)