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As Amazon Turns Its Gaze to Healthcare, the Industry May Be in for a Wild Ride

October 15, 2018 / L.E.K. Consulting

Amazon has been in the headlines disrupting markets for years, but over the past few months, we have seen more and more news about the company’s ambitions in healthcare. From the alliance with JPMorgan Chase and Berkshire Hathaway that Dr. Atul Gawande has been appointed to lead to the purchase of PillPack, Amazon is clearly serious about healthcare. The question now is how far will Amazon, the master disrupter, take this? The answer: very far, it’s safe to assume. Anyone who continues to think of Amazon as just a very big digital retailer needs to think again. The company has repeatedly shown that it has the capabilities, the patience, and the deep pockets to disrupt industry after industry. Healthcare is no exception. There are at least three reasons to believe Amazon is has a good shot. First, as one of the largest private employers in the United States, Amazon would reap huge financial benefits from lowering the high cost of healthcare in this country.