Get used to the new disruptors and terms. Business models such as Vertical Integrators, Employer Activists, Technology Invaders and Health Retailers.
New deals occurring: CVS Health announced its intention to purchase Aetna for $69 billion. Cigna Corp. has announced an agreement to buy Express Scripts Holding Co. for $67 billion. UnitedHealth Group’s Optum purchased DaVita Medical Group for $4.9 billion. Albertsons Cos. has agreed to merge with Rite Aid Corp. (https://www.albertsons.com/albertsons-cos-and-rite-aid-merge/)
Remember the partnerships announced recently including one among Amazon, JPMorgan Chase & Co. and Berkshire Hathaway Inc. ? In 2017, 967 deals occurred in the US health services market, including healthcare payers and providers.(https://www.pwc.com/us/en/health-industries/publications/pdf/pwc-health-services-deals-insights-year-end-2017.pdf)
PWC says "The US health system is starting to reorganize to obtain more favorable pricing and reimbursements. Companies are building capabilities to cut costs and meet customer needs in more convenient and transparent ways. Companies with capabilities across vast swaths of the health ecosystem are emerging, offering consumers one-stop shops for care, treatments, financing and risk management, wellness products and services—and in the case of retailers, toys, milk and wireless speakers."
The four main types of healthcare deals are said to be:
What: Companies looking to control the costs of their supply chain by owning more of it
Examples: CVS Health/Aetna; UnitedHealth Group’s Optum/DaVita Medical Group; Cigna Corp./Express Scripts Holding Co.
What: Employers seeking to limit the growth of their healthcare costs
Examples: JPMorgan Chase & Co., Berkshire Hathaway Inc, Amazon,
Health Transformation Alliance
What: Technology companies seeking to grab a greater foothold in healthcare
Examples: Google, Apple, Amazon, Uber, Lyft
What: Retailers looking to gain market share by better understanding consumer desires and behavior, and providing some types of healthcare directly
Examples: Walmart, CVS Health, Amazon, Albertsons Companies/Rite Aid."
Bottomline: New players and more money spent on who will eventually control the 18% or more of GDP. Whatever benefits the consumer may get the focus for large mega companies is control. If cost comes down and quality improves, it may be a good side benefit but a fair sized chunk of the $ will go to for profit companies. Count me as a cynic!!
This gives all those who are pushing for a single payer government system more power and voters eventually may side with them.
(Source: PWC The New Health Economy in the age of disruption)