Summer 2022 Update
What influenced our latest rating?
If there was a brighter shade of green or stronger validation than “Nailed It” on our scale, we’d use it here. The primary care space in particular has heated up. The CEO of Walgreens says their role is “keeping people out of the healthcare system.” Amazon buys One Medical. CVS Health to buy Signify Health. When Dollar General continues their push and wow, even ByteDance, the owner of TikTok, gets into the mix (albeit in China), we’ve really jumped the shark. Yes, Amazon did announce the closing of Amazon Care, but what that really means is an open question. On the other side of the battle? Recently, a CMO at a large health system shared the story of sharing the news on Amazon and One Medical with several C-suite colleagues. While most leaders understood the threat and implications, a few did not see the relevance of the story, wondering how the news would impact the system. And that perfectly summarizes where the legacy systems are today when it comes to the threat of The Funnel Wars.
Today we tend to consider hospitals and health systems as birds of the same feather in terms of business model, with variances based on size, scope of services, for-profit/non-profit, and other factors. Moving forward, we could see the splitting of the health system model, with some systems moving even further to the larger, more comprehensive “health” organizations, others retracting into solely acute-care destinations – the “giant ICU on a hill” – and others somewhere in the middle. These models may emerge based on core geographic/market differences such as presence of competitors, plan consolidation/power, regulation, and dozens of other market forces. Yet the primary area where this transformation would play out is with health, wellness and the lower-acuity care points – what we’re calling The Funnel Wars.