January 30, 2018. We normally do not start a post with a date – but it is an important date (at least if you base importance by the amount of news coverage). Amazon, Berkshire, and JPM are setting up a joint venture to provide health-care services for their employees. The statement from the companies listed two BIG CONCEPTS:
First, they are doing this to “offer health-care services to their US employees more transparently and at a lower cost.”
It seems that most don’t even realize that there are physicians out there who are already doing this (for instance, Direct Primary Care, Concierge Medicine, and many in the industry that we are currently building a business: regenerative medicine). Listing the prices of services leads to price discovery in the market place, which leads to scaling, which leads to better deals for users (patients).
With our impact firm, we offer something akin to Apple, Amazon, Google, or whatever company that we can compare to that has a platform that users want to put their products/services up for sale. However, what is obvious to us is being missed in all of the BIG CONCEPTS being offered out there. What is that concept? That the central piece of health care is the physician!!! Our platform not only seeks to improve patient care, but we also believe that to improve healthcare requires that we also provide a better quality of life for the physician. (This can not be emphasized enough – and we will spend a lot of time on this central fact).
There are few (if any) platforms out there that will talk about the importance of the physician AND actually show a physician how to:
- Get their prestige back as a “physician,” rather than “provider” (this is bigger issue for physicians than most non-physicians realize),
- Potentially make more money
- Have a better quality of life
- Show physicians how to be a business owners and create lasting value
The second point that I found interesting was that they want to provide something “that is free from profit-making incentives and constraints.”
Let’s be clear: there’s no way Bezos, Buffet, and Dimon are going to lose money on purpose just to provide health care for their employees.
It’s no secret that device and drug manufacturers, as well as health insurance companies, have been and will continue to be under pressure for their “obscene profits” (not my words, but this is where most point to when they talk about the high costs of health care). This will only continue, especially when Companies like Amazon, Berkshire, and JPM talk about building healthcare platforms that are “free from profit-making incentives and constraints.”
This is similar to one of the central thesis points of RHM: make the treatment – devices, cells, procedures – commodities. And therefore, drive down the costs of such things.
So, how do physicians get paid (we are Impact Capitalists, after all)? From the proverbial “value-added” services or through scaling. (We’ll address this more in future posts.)
Bezos personally (or through his family office) invested in a Direct Primary Care company several years ago…so, that kind of care is on his radar (the founders had a great idea, but are not good managers and didn’t understand the economics of the business of medicine; Bezos got out of that business in 2016).
Why does the Impact Physician platform matter?
Because we believe that we can improve healthcare outcomes through Impact Capitalist and Impact Physician principles and mindsets. Plus, traditional models are taking us in the wrong direction.
As we believe that we should put theory into action, we are building an Impact Physician based platform in the regenerative health management space.
We believe that, through RHM, we are not just building a platform for the future of regenerative medicine, we’re building the model for the future of medicine.
So, while most sit and wonder what’s next for these Titans, we’re already working to help providers transition to be the physicians they want to be.