The healthcare industry has been abuzz in recent months with news of two recent developments. The first is the disclosure by sources that CVS may soon execute a purchase of the medical insurance provider Aetna.
The second announcement is that Amazon Inc. has completed the licensing process to provide pharmacy services in a number of states. A thorough inspection of the licensing obtained by Amazon revealed that the company has been approved to distribute medical equipment and not pharmaceutical drugs.
Industry insider Drew Madden sees a clear connection between the maneuvers. Madden reports that he concurs with the many investors that chose to divest in an assortment of pharmaceutical stocks due to feelings that Amazon will someday soon become involved with prescription drug distribution. The ability Amazon has displayed in the past to penetrate new markets would make them a formidable opponent in the pharmaceutical industry.
Madden explains that the threat presented by Amazon has caused major players in the pharmaceutical industry like CVS to consider innovative methods to defend their market share. Many believe the CVS venture into the health insurance industry to be defensive in nature as they await a pending Amazon invasion.
The looming showdown between the entities is inevitable as both seek to stake their claim to the healthcare consumer. Amazon has always been considered a one-stop shop for all consumer needs and adding prescription medications to the mix is a logical progression. The CVS approach is to build on its established position in the retail healthcare sector to provide a comprehensive list of services that provide for pharmaceutical, insurance, and routine care needs.
About Drew Madden
Drew Madden is an entrepreneur in the Healthcare IT sector that has shown both an ability and passion for laying the framework for high-quality teams.
Madden served as the president of Nordic Consulting Partners from the year 2011 to 2016. During his time with the company, Nordic expanded at a pace that is not often witnessed in the world of business.
The company grew from 10 to more than 700 employees during Madden’s time as president and grew its client base from a beginning number of 3 to 150 partners. The company also grew its annual revenue from $1 million to $130,000 million.