I’m wondering if this is very much discussed and more importantly, whether an expectation that they’ll be getting into this sector is already being priced into the current valuation.
I don’t think it’s particularly much of a secret, but just hear me out. They tend to start up a small business operation for a while, and just run within their org. If things turn out well at the experimental stage, they invest hard and fast, through acquisition and/or expanding the operation rapidly.
I’m looking at some tidbits where they’re mentioning employee-internal health services, basically clinics with doctors and such.
It seems to me this is a classic R&D effort inside a controlled environment. If they find they have a special sauce that could work in the marketplace, I would imagine there is going to be an announcement at one point where they’ll position a new Amazon product (whatever it’s going to be branded as, but I wouldn’t bat an eyelash if it was simply Amazon Health).
It’s an enormously profitable industry, it’s very hard to make inroads without serious capital and lobbying capacity, and Amazon has both. The incumbents have for the most part a pretty lousy customer experience, and between the software, the retail, and policy influence experience, I’d wager there is some serious potential. Add to this the currently heightened awareness about health care facilities and services.
I believe there is a 2 year time frame before there would be a significant announcement that would essentially put PPOs and HMOs on notice and make them sweat. There are plenty of successful boutique providers, small local hospitals, specialty clinics, a handful of franchises, but they’re all small scale. Acquiring a business that has the right real estate, and then implementing a health services model that allows people to get most ambulatory treatments without the enormous hassle, admin overhead, and time.... seems like a solid proposition in my book.
Wondering if anyone has some more info or related data about this, with specific angle to find an anticipated valuation for 2023 and beyond.
Submitted May 26, 2021 at 06:23PM by Tossmeanewone https://ift.tt/3wBrNL0
