Tech giants’ ambitions in healthcare have seen a steady rise over the last few years. Every tech giant has some type of footprint in health as per their capability and interest, and many are even making long- term bets.
The opportunities, revenue, and ability to scale existing technologies in new ways is what attracts the tech giants to healthcare. Adding to this, there is a lot of money at stake too. According to CMS.gov, Healthcare represents 17.9% of the US GDP, or $3.3 trillion, and they predict it could rise to 20% by 2025.
In a bid to lead AI/deep learning initiatives for the companies, tech giants’ top AI scientists are maintaining academic research positions at leading universities. While Ruslan Salakhutdinov, Apple’s head of AI is at Carnegie Mellon in Pittsburgh, Alphabet’s Geoffrey Hinton heads a deep learning group at the University of Toronto, and Facebook’s head of AI, Yann LeCun, maintains a lab at NYU’s Courant Institute of Mathematical Studies.
The growth of business-to-business-to-consumer startups like Omada Health is another growing trend. Self-insured employers, who have an enormous amount of power to influence plans and change across the whole ecosystem account for 55% of private healthcare spend in the U.S. Apple is touted to be the next life insurance company, with Aetna already subsiding Apple Watches for large employers, giving Apple large amounts of health data.
Amazon also moved into the pharmacy market recently. Many other tech giants are either looking to move into healthcare or make an acquisition move. 2018 is a year to look forward to in this area.