The Week in Disruption goes beyond the headlines to uncover the significance of emerging trends in healthcare and beyond.
Apple’s bet on content bears fruit
One year ago, Apple was warning investors of sluggish iPhone revenue and absorbing a 7 percent decline in value as consumer interest in iPhone upgrades waned. With the company’s once-dominant platform softening, Apple CEO Tim Cook charted a course for beefing up Apple’s content offerings, including the launch of a new streaming channel, a subscription-based video game service, and even a credit card. Apple also made strides to broaden its funnel, slicing the cost of the new iPhone 11 by $50 to $700.
The moves to strengthen Apple’s platform and content are already producing results, with the company recently reporting record revenue bolstered by a 17 percent spike in services-related revenue and an 8 percent increase in iPhone sales.
Apple’s challenges—and its thoughtful response—are an apt reminder that even the large tech companies who helped pioneer the internet economy must ceaselessly continue to innovate to stay ahead of the curve.
Humana targets primary care in Medicare Advantage race
As the battle for the booming Medicare Advantage market heats up, insurers are making moves to broaden their primary care offerings, traditionally the entry point for the entire healthcare system.
Humana recently announced a joint venture with private equity firm Welsh, Carson, Anderson & Stowe to double the size of its Partners in Primary Care initiative, which currently operates 47 senior-focused primary care centers. Humana, which currently serves 4.1 million Medicare Advantage members, hopes to grow its membership by 420,000 people this year.
UnitedHealthcare recently announced plans to boost its own Medicare Advantage enrollment by 700,000 in 2020. Total Medicare Advantage enrollment rose to 24 million in December 2019, the Centers for Medicare & Medicaid Services recently reported.
One Medical’s promising public start
Primary care upstart One Medical, which offers concierge services through memberships and contracts with employers and health systems, is in the middle of an aggressive growth strategy of its own, with a 50 percent expansion in the number of markets it serves in the last 18 months. The company has specifically targeted partnerships with regional health systems as a pathway for opening up clinics and offering hospital services to One Medical patients.
The company, which decided to go public to support further growth, saw its stock jump 60 percent to $22 per share during its recent initial public offering.
Innovation at a glance
- Walmart opened its second Walmart Health primary care center in Georgia
- Lyft is partnering with CommonSpirit to provide non-emergency patient transportation
- Walgreens plans to open 12 pilot “health corners,” which will include space for pharmacists to meet with patients, in Tennessee
- Half of Spectrum Health’s virtual visits are currently for patients with flu symptoms, which system leaders credit with helping address a challenging flu season