Should Amazon have a key presence in healthcare?
Amazon’s latest endeavour promises improved patient outcomes but raises questions about potential data misuse (1,170 words, 6 minutes)
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Amazon.com, Inc. announced on Thursday, July 21, that it would purchase the primary care organization One Medical. The acquisition, valued at approximately Cdn$5 billion (US$3.9 billion), is the latest move by the tech colossus to access the healthcare market.
One Medical is a San Francisco-based chain of primary healthcare clinics. The company offers membership-based services, combining in-person care and digital health and virtual care services.
According to a press release from Amazon, One Medical’s services “make it easier for patients to schedule appointments, renew prescriptions, access up-to-date health records, and advance health outcomes.”
Amazon has been trying to push into the healthcare space for years and, according to a statement by Neil Lindsay, Senior Vice President of Amazon Health Service, “healthcare is high on the list of experiences that need reinvention.” According to Lindsay, the long wait times at hospitals and rushed doctor visits are just some of the issues patients face. He explained, “we see lots of opportunities to both improve the quality of the experience and give people back valuable time in their days.”
However, some tech industry critics quickly raised concerns about the deal and the data the company now stands to access. In an email to CNBC, Caitlin Seeley George, campaign director for Fight for the Future, said that sensitive health data would not be safe with Amazon. Fight for the Future is an advocacy group focused on protecting technology and digital rights for individuals.
“I don’t think there is anything Amazon could do to make people trust the company with their healthcare information,” she said. She went on to note that the issue of health privacy is particularly crucial after the U.S. Supreme Court overturned Roe v. Wade, which ended the constitutional right to an abortion. Amazon has already limited sales of emergency contraceptive pills after demand spiked following the Supreme Court’s ruling.
“Pushing forward into healthcare raises some serious red flags, especially in the post-Roe reality where peoples’ data can be used to criminalize their reproductive healthcare decisions,” said Seeley George.
However, some believe that Amazon can make impactful changes to individual healthcare.
One such person is Shantanu Nundy, chief medical officer of Accolade Healthcare, who stated that roughly one-quarter of Americans do not have a primary care provider. He said Amazon acquiring One Medical “is an example of a new care model that has the potential to reach more people.”
Deena Shakir, a partner at venture firm Lux Capital and an investor in numerous health-tech start-ups, addressed the risk of data misuse by Amazon in a statement: “Amazon is keenly aware of how to handle HIPAA [Health Insurance Portability and Accountability Act] considerations and has experience across multiple products with this.”
HIPAA, the U.S. federal law, protects sensitive patient health information from being disclosed without the patient’s consent or knowledge.
Shakir explained that the acquisition “should encourage additional partnership between larger companies and major health tech players.”
THIS WEEK 08/09/22
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Advil introduced Advil PLUS acetaminophen in Canada. This formulation combines ibuprofen and acetaminophen into one tablet. Advil PLUS Acetaminophen is an over-the-counter medication for temporary pain relief in adults.
LISTEN NOW
In season seven of the NPC Podcast, Michael Stone, General Manager for Canada of Mallinckrodt Pharmaceuticals, talks about taking on a leadership role during the pandemic, attracting younger, tech-savvy talent and the relevance of an education degree in pharma. Hear him in conversation with podcast hosts Mitch Shannon, Jim Shea and Mark McElwain.
CANADIAN HEALTHCARE MARKETING HALL OF FAME
The Canadian Healthcare Marketing Hall of Fame awards were established in 2002 to honour healthcare marketers who have contributed to our vocation and inspire others.
More than 100 honourees have been selected during the past 18 years. In the selection committee’s view, they represent a cross-section of the qualities that make our business unique and fulfilling. NPC Healthbiz Weekly will acknowledge one past Hall of Fame Honoree each week.
2004 Inductee
Gilles Lachance
Quebec
“I still love sales. I could have been a representative all my life,” says Gilles Lachance, looking back on his 41-year career in the healthcare industry. But Lachance admits that his fondness for pharma didn’t emerge immediately. He spent seven years in the banking and insurance industries before discovering healthcare as a rep with Anca Laboratories. It was an opportunity to work for Schering in 1964 “that changed my life completely,” he says. He subsequently spent 19 years with the company in various sales and marketing positions before moving to Jouveinal as Director of Marketing and Sales.
But the last 14 years have been “the most interesting and enjoyable of my professional life,” Lachance says of his position as General Manager of the non-profit Council for Continuing Pharmaceutical Education (CCPE). “I love it. I meet extraordinary people,” says Lachance, credited with spearheading significant changes at the organization, which was formerly known as the APMR (Accredited Pharmaceutical Manufacturers Representative).
Modernizing the concept of the CCPE was a top priority. Lachance observes: “We changed the name and the logo in 2001 because we felt that APMR did not represent what we were doing.” Indeed, things have come a long way since the Pharmaceutical Manufacturers Association conceived the APMR of Canada in 1969 as a self-regulating body.
“In those days, companies were hiring people without any science background. There was a need for some standard to be established. That was the first mandate of APMR — to prepare a course that would establish standard knowledge for all the sales representatives in the industry. We are moving from knowledge to application of that knowledge, which is a different story,” Lachance says.
Lachance’s “proactive rather than reactive” vision has helped to change the curriculum and eligibility criteria for CCPE courses. The courses are now open to those currently not in the industry but may aspire to be. In 2001, a course on how to run CME sessions was added to the curriculum, emphasizing the code of marketing practices and guidelines. “The ethics issue is going to be part of the mandate (for the future),” he asserts.
Lachance’s philosophy to “keep current-keep improving ourselves” is something he hopes to take with him into retirement this year. “All your life, you have to prove that you are useful. The old saying, ‘it’s not what you did for me yesterday, it’s what you do for me today applies to all of your career.”
NEXT WEEK
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