Healthcare Companies Innovate with New Business Models

Healthcare Companies Innovate with New Business Models

The health care sector is innovating with new business models as companies continue to adapt to the transformative Affordable Care Act. The trend is visible in the changing strategies of top health companies as measured by revenue, according to Fortune magazine.

CVS Health is becoming a full service health management company after buying Target’s 1,600 pharmacies and Omnicare, a drug delivery company that helps senior-living centers manage residents’ medications. McKesson, the largest U.S. pharmaceutical distributor, now also offers enhanced IT services. United Health, the largest U.S. health insurer, has invested in Optum, a health services division. Last year’s merger between Walgreens and U.K.-based Boots Alliance created the world’s first global, pharmacy-led health and well-being enterprise. And a new partnership between Walgreens Boots Alliance and AmerisourceBergen, a global pharmaceutical distribution and sources services company, boosted the bottom lines of both businesses by pooling their generic-drug buying for big discounts. The pace of change in the business models of the health care industry is increasing, and so are the profits.

I’m John Howell for 3BL Media.