Healthcare giant CVS is expected to take over the operation of health insurance giant Aetna anytime soon. That is according to a recent report. The revelations give a picture of a company not willing to let anything to chance. With CVS already dominant in the sector through its pharmacy and routine care outlets across the country, the addition of insurance services is bound to cement that market leader position. The competitive advantage it is expected to develop from the acquisition of Aetna will make it impossible to challenge CVS’ dominance in the country. While this may seem like any other ordinary expansion strategy, the decision to announce a new sales delivery model points to some other external force. CVS announced that it will now offer nationwide next-day delivery for all prescription medication.
CVS’ adjustments may have something to do with another announcement made by the techie giant Amazon. The retail giant announced it was planning to enter the pharmacy sector since it secured pharmacy licenses in several states. The permits are restricted to distribution of pharmacy equipment. While this allows pharmacy giants to breathe, the market was not fooled. Investors know it just a matter of time before Amazon goes for the distribution of prescription medications. The stock prices of big pharmacy companies adjusted accordingly factoring in the disruptive capability of Amazon.
Amazon is seeking to capitalize on its already developed advantage in the retail distribution sector. What keen Health IT experts like Drew Madden say is that the health sector presents every opportunity that can help improve performance while ensuring profits for innovators. The B.S.E industrial engineering graduate who specialized in medical systems at the University of Iowa College of Engineering, knows well that the healthcare system is yet to benefit fully from technological innovations.
Having served as President of Nordic, Drew Madden has the necessary experience to speak on matters of health IT. As president of Nordic, he oversaw one of the most dramatic expansions of the company. Nordic’s employees grew from just ten to more than seven hundred. The number of clients for the consultancy rose from 3 to more than one hundred and fifty in only three years.