The industry of healthcare is ripe for the proverbial picking, per CVS Corporation and Amazon. The former entity is the biggest pharmacy chain in America, whereas Amazon is, by far, the most sizeable eCommerce platform in North America, not to mention most – if not all – places of the world.
CVS Pharmacy is ramping up mail-order delivery of prescription drugs to next-day for all customers, hoping to fend off pressure from Amazon’s well-established ability to deliver products in a maximum of two days. Amazon is slated to begin selling prescription drugs delivered through postal carriers in the foreseeable future.
In the interim, Amazon has been granted a few pharmacy licensures to sell equipment used in the practice of medicine. Experts such as Drew Madden expect Amazon to start the process necessary to distribute drugs in the next few years.
It makes sense for Amazon to target the healthcare industry as its next endeavor, as the corporation has already mastered the world of online shopping.
As a percentage of gross domestic product in the United States, healthcare spending has increased from north of 5 percent in 1960 to nearly 18 percent in 2010. Based on history, the proportion is likely to keep growing. Also worth noting is the fact the United States pumps $9,250 into healthcare for each person in the country, the largest such delegation in the world.
Investors across the nation have dropped shares in public pharmaceutical companies like CVS Corporation and Walgreens in response to news that Amazon is likely to enter the healthcare fray. Amazon won’t have many sizeable competitors in the marketplace, as many business owners and funders have swerved clear of the world of healthcare, as the field is swamped with regulations and rules set forth by the government.
Drew Madden is intimately familiar with healthcare, as he’s been involved with information technology in healthcare for nearly a decade. From 2010 to 2016 he took the consultancy group Nordic Consulting Partners to levels never before seen by its owners, bringing its revenue up from $1 to $130 million, from 10 to 725 employees, and drawing in 50 times as many clients.