The $5 Trillion Question: Who Owns the Future of Healthcare? 

The $5 Trillion Question: Who Owns the Future of Healthcare? 

Key takeaways: 

• Companies, including Amazon, Him & Hers, Google and Apple, are entering the $5 trillion healthcare market. 

• These companies are disrupting the way healthcare works, with same-day virtual appointments, upfront pricing and using the latest AI technology. 

• Traditional healthcare can keep up by creating convenience, leaning into AI and focusing on what makes it unique.  

Are companies like Amazon going to make healthcare as easy as ordering same-day delivery? It’s no surprise that retailers including Amazon, CVS Health, Walgreens and even tech firms like Google and Apple are breaking into the healthcare market to try and get a piece of the $5 trillion healthcare pie.  

Amazon has jumped into the healthcare industry with both feet by purchasing One Medical for $4 billion. Now Prime members can subscribe to the service to chat or have a video appointment with a doctor for health issues like the cold and flu, UTIs, diabetes, skin conditions and more. They can also visit a clinic in person if they live in a major metropolitan area.  

It’s not just the heavy hitters getting in the healthcare game. New companies, including Hims & Hers and Ro, have apps that offer quick solutions to things like weight loss, ED treatment, birth control, anxiety issues, hair loss and more.  

I went to one of these sites, answered a few questions online and had it sent off for a doctor to review so I could get a prescription for a popular weight-loss drug right in my inbox. Was I bitter that they told me I could lose up to 32 pounds even though I’m technically within the normal weight range? Yes. Did I love the convenience of being able to get a prescription without stepping into a doctor’s office? Also yes.  

These new healthcare models are disrupting how healthcare works. What could that mean for the old guard of healthcare companies and providers?  

Photo by Vitaly Gariev on Unsplash 

How new healthcare companies are changing healthcare 

1. It’s all about convenience

Online healthcare is changing what consumers consider to be convenient. Virtual visits, 24/7 access, home pre scription delivery and upfront pricing are setting new expectations. Now we don’t have to wait to get what we want. Patients used to one-click shopping online expect the same ease when booking an appointment or filling a prescription. 

2. Price is no longer a guessing game 

One major issue with healthcare right now is there’s no clear pricing. Is that primary care visit going to be $15 or $150? Who knows? How much will that X-ray cost? Your guess is as good as mine.  

Many of these new healthcare startups are charging a flat fee up front, with the price listed on their website. With transparent and often lower pricing, many people would rather pay a $50 fee online than risk a surprise $180 bill from a primary care visit their insurance didn’t cover. 

3. New tech and AI are changing the game  

Amazon’s massive logistics network, Ro’s digital-first approach and Hims & Hers’ direct-to-consumer model all show what technology can do at scale. These companies lean on data and AI to make the entire experience simpler and more personalized. 

Ro and Hims & Hers use algorithms to match patients with the right providers, medications or wellness plans, so, despite the easy digital experience, care still feels personalized.  

Amazon is using data and AI to: 

• Streamline prescription refills 

• Anticipate patient needs 

• Speed up scheduling and triage 

• Automate medical-record processing so doctors spend less time on paperwork 

On top of that, AI-powered chat gives patients quick answers to common health questions, cutting down on wait times and letting providers handle the tough cases.  

Leaning too far into AI can have its drawbacks. We’ve all been stuck in an online chat with an AI machine that doesn’t provide answers and is doing everything in its robot power to keep you from talking to a real person. Ever try talking to an actual customer representative at Amazon? Not going to happen.  

While AI is far from perfect, and many tech companies lean too hard on robots to interact with customers, it is constantly adapting. And companies who start out tech friendly or have a tech-based approach will have the advantage when it comes to optimizing AI and data to level up their process.  

Photo by National Cancer Institute on Unsplash 

What does this mean for traditional healthcare? 

Obviously, these healthcare solutions can only go so far. Until these new companies can figure out how to take your gallbladder out online, there’s still a need for conventional healthcare models. But with the changing healthcare tide, providers, pharmacies and insurance companies will need to prove they can adapt or possibly be swept out to sea. Here’s how they can keep from going underwater.  

1. Lean into creating convenience 

People like things to be easy and sometimes visiting the doctor can be anything but. Booking an appointment, getting in to see the doctor on time and not waiting forever once you arrive can all be frustrating. These inconveniences are what drive people to easier options or cause them to skip visiting the doctor altogether.  

Healthcare companies can stay competitive by making care feel as seamless as other everyday services, with services like:  

• Automatic scheduling: If the provider wants to do a follow up, they should work to book that for the patient automatically. This is where tech can come in handy, use scheduling data to provide options and have a patient choose one that works for them.   

• Virtual visits and home based screenings: Up the convenience factor by allowing patients to enjoy visits from the comfort of their own home for easy to diagnosis issues. They can also do screenings at home for things like colon screenings, perimenopause, STIs and more.  

• Shorter wait times: When patients do need to come in, building in time buffers and automating paperwork to finetune the schedule so there are shorter wait times can help make the process easier when people do need to visit the doctor.  

The more providers simplify the experience, the easier it is to keep patients from turning to digital-first newcomers. 

2. Pick up the digital pace  

There’s been a lot of talk about AI in healthcare but what does that mean? Traditional healthcare can take a page from the new disrupters and use AI to work better.  

AI isn’t just hype—it’s changing how healthcare works. As a traditional provider, you can get a peek at what disruptors and other healthcare companies are doing with AI and copy what works.  

Personalized treatment plans. AI can analyze a patient’s full history, genetics, lifestyle and socioeconomic issues so their doctor can see their whole healthcare picture and pick the treatments that work for them. Here’s a few ways AI can help: 

• Providers can see data from wearables like the Apple watch or Fitbits and use a patient’s data to track their progress.  

• They can use AI predictive models to focus on patients who may be more at-risk. 

• They can also use social care coordination to connect patients to the resources they need. 

24/7 virtual assistants. Patients can get questions answered or schedule visits anytime, reducing wait times and making care more convenient. 

Balance automation with real people. Don’t allow the new AI gods to take over, patients still need access to real people when the situation calls for it. For every internet visit or automated call, ensure you provide info on how patients can talk to a real person if they need to.  

3. Be clear about costs  

Other businesses understand that people want to know how much something costs before they use it. For some reason, healthcare has been able to ignore that. Consumers may be reluctant to visit their doctor or use their healthcare because they don’t want to be slapped with a big old bill after the fact.  

Take a note from the digital healthcare leaders by being clear about costs upfront. Patients are tired of surprise bills and confusing pricing. This is where AI could be beneficial, when someone schedules a visit, you could use AI to estimate costs upfront, based on the person’s insurance and run down costs if additional bloodwork or screens are needed. Clear, simple explanations of what care will cost, not after the fact, but before, will build trust and make people less bitter when it comes time to pay. 

4. Understand what makes you stand out  

Not all doctors are created equal, and finding a doctor you like creates loyalty. Much like getting the perfect hairdresser, people are willing to go out of their way when they have a doctor they trust.  

Bedside manner plays a big part in how much people like and trust their doctors. Over half of patients are looking for qualities like compassion and patience in their doctor. Over 59% of people consider personality and a good doctor-patient relationship to be the most important factor in their doctor.  

Traditional providers bring something to the table that disruptors can’t match: a local presence, trusted expertise and long-standing patient relationships. By focusing on personalized, in-person care and joining the community, they have that personal, local advantage compared to the cold impersonality of the digital model.  

Creating a sense of community with in-person events and local outreach can go a long way in establishing yourself as the more community friendly option.  

Are you ready for the future of healthcare?  

The future of healthcare probably won’t be all digital or all traditional—it’s going to be a mix of both. Patients will want the convenience of online care for things like prescriptions, check-ins and minor issues, but they’ll still turn to hospitals, specialists and in-person providers for their big needs.  

For traditional healthcare companies, the real opportunity is blending the best of both worlds: making digital access easier, pricing clearer and logistics better, while holding on to the human touch and community trust that new players can’t replace.  

As always, being able to communicate what sets you apart and how your healthcare is adapting to fit your patients’ needs is important. Luckily, that’s what we do best. Contact us to learn how.