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There's excessive concentration at every level of the health care industry. The top 3 PBMs have 80% of the market. Hospitals have consolidated. Doctors practice
by IBM 9y ago
There's excessive concentration at every level of the health care industry. The top 3 PBMs have 80% of the market. Hospitals have consolidated. Doctors practices have consolidated. Consolidation begets consolidation as everyone seeks to increase their leverage over suppliers and customers.
If Amazon is going to get into the pharmacy business they'll probably become a distributor as well since it's an outgrowth of the logistics they already do.
- pcurve 9y ago"Hospitals have consolidated" Are you sure about this? Hospital and provider networks are probably the most fragmented layer in the healthcare vertical stack, by far. In the For Profit space, I would agree with you, top 3 dominates. But if you throw in non-profit into mix, their power gets really diluted. https://www.compassphs.com/blog/healthcare-trends/healthcare-fast-facts-top-30-largest-hospital-systems-in-america/ https://www.compassphs.com/blog/healthcare-trends/healthcare...
- IBM 9y agoI was talking about the for-profit hospitals mainly but non-profit hospitals have been consolidating as well. In Massachusetts, a Partners HealthCare acquisition was blocked on antitrust grounds [1]. If other parts of the value chain are consolidating, everyone feels the need to consolidate. [1] https://www.bostonglobe.com/business/2015/01/29/partners/s9TxpYCBakjPN6pDbBFHGL/story.html https://www.bostonglobe.com/business/2015/01/29/partners/s9T...