Takeaways from 3 Big Disruptors at JPM Healthcare 2024

Health care executives from hospitals and health systems, retail health providers and investors came together recently to share insights and outlooks at the 2024 J.P. Morgan Healthcare Conference. And while there weren’t the kind of major developments we’ve seen in previous years, several retail health companies offered insights into their latest moves and plans.

Amazon Launches New Enrollment Pathway to Manage Chronic Conditions

The company is now partnering with digital health companies in a new offering called Health Condition Programs to make it easy for Amazon customers to discover and enroll in the digital health benefits available through their employer or insurance plan to help manage chronic conditions like prediabetes, diabetes and high blood pressure. Omada Health is Amazon’s initial launch partner for the program.

Amazon’s Health Condition Programs aim to raise awareness of Omada’s cardiometabolic programs and increase enrollment for Omada’s 1,900-plus employer and health plan customers, representing more than 20 million eligible members. Omada’s outcomes from the diabetes program include a 12-month A1C decrease of 2% for members with a baseline A1C above 8%, with 76% of members achieving Omada’s A1C reduction goals.

Amazon wants to help its customers become and remain healthy by connecting them with products, services and professionals who can help them do that. Amazon.com customers who shop for devices related to their conditions, such as a glucose meter or blood pressure monitor, will receive notices that they may be eligible to join a chronic condition program. They can then visit the Amazon Health website to check whether they are eligible and, if so, they will be directed to Omada’s website to enroll. Amazon plans to work with other digital health programs as well.

Takeaway

This initiative is the latest example of Amazon’s customer-centric approach to make it easier for people to navigate their health journey, improve their health and reduce medical costs. Saving consumers money may be a byproduct of such efforts, but the primary emphasis is on seamlessly assisting patients at each step of their care experience. It’s an endeavor hospitals and health systems can watch closely and perhaps work to emulate in terms of easily connecting with patients in their care navigation. Hospitals and health systems can look for opportunities to collaborate across business, tech and health sectors to scale impact, improve health outcomes and drive health equity.

CVS Health Concentrates on Integrating Assets

After a slew of acquisitions in recent years, none bigger than its deals to acquire home-health giant Signify Health and primary care provider Oak Street Health, CVS Health is accelerating efforts to make these investments pay off and deliver greater value for consumers. The retailer has been examining where the two businesses align with CVS’ retail pharmacies and where there are redundancies in care management, CVS Health CEO Karen Lynch said.

Meanwhile, CVS Health Ventures, the venture capital arm of the company, also made news at the conference by investing in WellBe Senior Medical, an in-home medical care provider. WellBe will use the investment, the amount of which was undisclosed, to advance its national expansion plans.

WellBe is a value-based home care provider for Medicare Advantage beneficiaries, serving more than 107,000 members across seven states. Its services include acute care visits, urgent medical response, post-acute transitional care for older adults and more. The two companies have a previous relationship because of a partnership between WellBe and Aetna, CVS’ insurance business.

Takeaway

Like Amazon, CVS Health is working to get its customers to interact with the retail pharmacy at multiple points in their health care experience. After investing billions in this effort, it’s still too soon to say how successful CVS Health will be in achieving its objectives, particularly with its acquisitions. Some analysts remain skeptical about whether Oak Street Health will ever offer a return in line with the $10.6 billion CVS paid for the company last year.

Walgreens Sharpens Its Earnings Focus

The company’s new CEO Tim Wentworth made it clear that Walgreens won’t be making more major acquisitions or mergers any time soon. Instead, Walgreens will concentrate on growing earnings long term and “capital efficient health services expansion.”

In a recent interview with CNBC, Wentworth said Walgreens has been using its stores and brand to bolster its developing health care business. He added that the company has been closing stores, including about 30 of the eventual planned 60 closings of underperforming VillageMD locations.

Takeaway

This could be a pivotal year for Walgreens’ health care business as it competes with larger rivals like CVS Health and Amazon. It bears watching as the company explores new pharmacy models as cost-plus drug pricing accelerates.