Podcast Summary
Atlassian and Amazon: Transforming Industries through Collaboration and Disruption: Atlassian's collaboration tools and Amazon's healthcare disruption can lead to improved outcomes and efficiency in industries
Atlassian software, used by millions of teams worldwide, including 75% of the Fortune 500, helps individuals work together more effectively to accomplish great things. Atlassian, trusted by teams from various industries, offers tools like Jira, Confluence, and Loom to keep teams connected and productive. Amazon, represented by the metaphor of a megalodon, is disrupting the US healthcare industry, which has seen a massive increase in spending without significant improvement in quality or financial return. The acquisition of One Medical marks Amazon's aggressive entry into healthcare, with the industry accounting for 13% of the workforce and 5th of US GDP. The takeaway is that collaboration through Atlassian software and innovative disruption through Amazon in healthcare can lead to significant improvements and better outcomes. Stay hydrated with Smartwater alkaline while you innovate and collaborate.
US healthcare: Poor outcomes, high cost, and financial burden: The US spends the most on healthcare yet faces poorer outcomes, high financial burden due to cost and time off work, and long wait times and excessive paperwork in healthcare.
Despite the US spending more per capita on healthcare than any other developed nation, the outcomes are often poorer. Nearly one-third of American adults have delayed or gone without necessary care due to cost, and 2 out of 3 personal bankruptcies are linked to healthcare expenses and time off work. The system seems to have a "dark lining" for every improvement, such as the opioid epidemic from the pharmacological revolution. The US also has one of the worst retail experiences in healthcare, with long wait times, excessive paperwork, and physicians spending more time on bureaucracy than patient care. If the US achieved the same return on healthcare spending as other developed countries, we could potentially live longer, healthier lives without the financial burden.
Amazon's acquisition of One Medical disrupts US healthcare: Amazon's acquisition of One Medical aims to make healthcare more accessible, convenient, and affordable by combining digital and physical services, quick response, and prescription delivery.
The Amazon's acquisition of One Medical for $3.9 billion marks a significant step towards disrupting the US healthcare industry. The current healthcare system, despite being capitalist, is inefficient and expensive. One Medical, with its digital and physical services, has the potential to revolutionize healthcare with its focus on convenience and quick response. However, the company needs capital and scale to expand its reach. Amazon, with its vast resources and customer base, can provide both. The integration of quick prescription delivery is the missing piece in One Medical's business model, and Amazon's expertise in this area will make a huge difference. Despite past attempts, such as Haven, Amazon's entry into the healthcare industry has been a long and winding road, but the acquisition of One Medical signals a serious commitment to making healthcare more accessible, convenient, and affordable for everyone.
Amazon enters healthcare with One Medical acquisition: Amazon acquires One Medical to expand into healthcare, focusing on telehealth due to its growth and lower valuations compared to traditional healthcare services.
Amazon's acquisition of One Medical signifies a strategic move into the healthcare sector, driven by the need to add significant revenue to maintain its stock price. This move comes as investors have lost faith in the ability of traditional healthcare companies to grow, and as competitors like Walmart and Alibaba also enter the market. The immediate unlock for Amazon in this sector is telehealth, which has seen massive growth due to the pandemic and is expected to remain a significant part of healthcare delivery moving forward. McKinsey estimates that telehealth visits have stabilized at 38 times pre-pandemic levels, and studies show that certain patient groups can experience similar outcomes with virtual visits as they do in person. This shift to telehealth not only benefits consumers but also investors, as healthcare services now command lower multiples than the S&P 500 average. Amazon's entry into healthcare is a sign of things to come as tech companies seek to disrupt traditional industries and bring operational expertise and data facility to sectors that lack scale.
Tech Giants Entering Healthcare: A Double-Edged Sword: Tech giants like Amazon, Nike, LVMH, L'Oreal, and hotel chains are entering healthcare, bringing competition and potential risks. Consumers are comfortable sharing health data, and radical interoperability and data sharing are expected. Regulators should focus on promoting competition and ensuring consumer protection.
The entry of Amazon and other big players into the healthcare industry is set to bring significant disruption and change. Mark Cuban's entry into the pharmacy market, eliminating middlemen and reducing costs, is just the tip of the iceberg. Companies like Nike, LVMH, L'Oreal, Estee Lauder, and even hotel chains could enter healthcare, offering everything from wellness to plastic surgery and even hospitals. Consumers' concerns about sharing personal health data over virtual technology are overblown, with most feeling comfortable doing so. Radical interoperability and data sharing are expected to become standard practice, and Amazon is the most trusted big tech firm to handle personal data. Antitrust enforcement should focus on making markets more competitive, and Amazon should be allowed to enter healthcare via acquisition. The FTC and DOJ should remain focused on promoting competition, even if it means forcing divestitures in other areas. In short, the entry of tech giants into healthcare is a double-edged sword, bringing both competition and potential risks, and it's up to regulators to strike the right balance.
Disrupting healthcare with competition: Amazon's innovative business model could bring competition and cost savings to the US healthcare industry, improving access to quality treatments for those struggling with high costs and limited options.
The current state of US healthcare leaves many people feeling overweight, depressed, and financially strained. However, the solution to this problem may lie in the very thing that has brought prosperity to other sectors of the economy: competition. The best treatments for our health issues often come from competitive markets. Amazon, with its proven track record of disrupting industries and driving down costs, is a beacon of hope in this regard. By applying its innovative business model to healthcare, Amazon could help make life richer for those who are currently struggling with the high costs and limited options of the current system. It's a bold move, but one that could bring about much-needed change in an industry that is long overdue for disruption.
Jonathan Thierman, MD, PhD, is physician executive in the LifeBridge Health system and president of the medical staff at Northwest Hospital. He started his career as an engineer and inventor, earning his PhD at MIT and then training in emergency medicine at Harvard Medical School and Johns Hopkins Hospital. In the past, he has worked to bring real-world clinical experience to the engineering and design of medical devices.
