I'm the cofounder of a health tech startup. This is my opinion.The cynical spin was healthcare pre-2008. Today, our healthcare industry is finally making meaningful changes to its model, moving from fee-for-service toward value-based care and risk sharing. [1]
This means payers, providers, and everyone in between is now incentivized to get IN FRONT of problems (like smoking) before it creates an even bigger, high-cost/high-risk patient population (heart disease, cancer, etc). Those who don't will get phased out / merged.
The reality is ~75% of the $2.2 trillion we spend on healthcare per year goes toward fighting said chronic conditions. From a distribution perspective, 20% of the population is responsible for ~80% of costs... 5% of population, ~50% of costs. Moving the needle a small amount matters a lot.
[1] This is one example of a brand changing due to industry consolidation. Prices are being commoditized across the board for care, for drugs, etc. As others have said, CVS & Walgreens are no longer just pharmacies selling drugs. They are diversifying and growing into providers just like payers.
The cynical spin was healthcare pre-2008. Today, our healthcare industry is finally making meaningful changes to its model, moving from fee-for-service toward value-based care and risk sharing. [1]
This means payers, providers, and everyone in between is now incentivized to get IN FRONT of problems (like smoking) before it creates an even bigger, high-cost/high-risk patient population (heart disease, cancer, etc). Those who don't will get phased out / merged.
The reality is ~75% of the $2.2 trillion we spend on healthcare per year goes toward fighting said chronic conditions. From a distribution perspective, 20% of the population is responsible for ~80% of costs... 5% of population, ~50% of costs. Moving the needle a small amount matters a lot.
[1] This is one example of a brand changing due to industry consolidation. Prices are being commoditized across the board for care, for drugs, etc. As others have said, CVS & Walgreens are no longer just pharmacies selling drugs. They are diversifying and growing into providers just like payers.