Takeaways from 3 Big Disruptors at JPM Healthcare 2024

Healthcare executives, industry leaders, and investors recently gathered at the 2024 J.P. Morgan Healthcare Conference to share insights and outlooks for the future. While the event didn't bring major breakthroughs this time, it did shed...

Takeaways from 3 Big Disruptors at JPM Healthcare 2024. A magnifying glass over the year 2024 surrounded by logos for CVS, Amazon, and Walgreens.

Healthcare executives, industry leaders, and investors recently gathered at the 2024 J.P. Morgan Healthcare Conference to share insights and outlooks for the future. While the event didn't bring major breakthroughs this time, it did shed light on the latest moves and plans of some retail health companies.

Amazon Launches New Enrollment Pathway to Manage Chronic Conditions

Amazon is making it easier for its customers to manage chronic conditions by partnering with digital health companies. Their new offering, Health Condition Programs, aims to increase awareness and enrollment in digital health benefits available through employers or insurance plans. Amazon's initial launch partner for this program is Omada Health.

The Health Condition Programs highlight Omada's cardiometabolic programs and are expected to attract more than 20 million eligible members. Omada's diabetes program has shown promising outcomes, including a 12-month A1C decrease of 2% for members with a baseline A1C above 8%. This initiative is part of Amazon's customer-centric approach to facilitate better health journeys and reduce medical costs.

Amazon Health Condition Programs

Takeaway

Amazon's focus on providing seamless assistance throughout the healthcare journey is a strategy that hospitals and health systems can learn from. By emulating Amazon's approach, healthcare providers can improve patient care navigation and enhance overall health outcomes.

CVS Health Concentrates on Integrating Assets

CVS Health has been making strategic acquisitions in recent years, including Signify Health and Oak Street Health. Now, the company is determined to leverage these investments to deliver greater value to consumers. CVS Health CEO Karen Lynch explained that they are examining how these businesses align with their retail pharmacies and streamlining care management.

Apart from acquisitions, CVS Health Ventures has made headlines by investing in WellBe Senior Medical, an in-home medical care provider. WellBe focuses on value-based home care for Medicare Advantage beneficiaries, serving over 107,000 members across seven states.

Takeaway

Similar to Amazon, CVS Health aims to engage customers at various touchpoints in their healthcare experience. While the success of these acquisitions is yet to be fully realized, CVS Health's dedication to integrating assets shows their commitment to transforming the healthcare landscape.

Walgreens Sharpens Its Earnings Focus

Walgreens' new CEO Tim Wentworth has emphasized a shift in strategy. Instead of pursuing major acquisitions or mergers, the company will focus on long-term earnings growth and capital-efficient health services expansion. Walgreens has been using its stores and brand to strengthen its evolving healthcare business, including closing underperforming VillageMD locations.

Takeaway

As Walgreens competes with industry giants like CVS Health and Amazon, this year could be pivotal for its healthcare business. With the exploration of new pharmacy models, Walgreens aims to navigate the challenges posed by the accelerating cost-plus drug pricing.

In conclusion, the 2024 J.P. Morgan Healthcare Conference provided valuable insights into the strategies of three major disruptors in the healthcare industry. By prioritizing customer-centric approaches, integration of assets, and earnings focus, Amazon, CVS Health, and Walgreens are shaping the future of healthcare. Their initiatives can inspire hospitals and health systems to collaborate across sectors and drive positive change in the industry. Let's watch closely as these disruptors continue their journey towards revolutionizing healthcare.

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