Amazon’s (AMZN - Free Report) push to revolutionize the health care industry by minimizing its reliance on traditional methods of tracking patient records is expected to create significant disruption in the space.
The e-commerce giant’s latest service launch, Amazon Comprehend Medical, aids in seamless extraction of medical information related to health condition, medication, dosage and treatment from unstructured data-like test reports, doctor’s notes and audio interviews. The service utilizes robust machine learning (ML) techniques and cloud services to extract the data.
The new service is expected to make the healthcare management process hassle free and time efficient that will significantly benefit the doctors, healthcare providers and patients.
This is likely to help the company in reaping benefits from the solid growth prospects of global healthcare quality management market. Research and Markets expects the market to see CAGR of 15% between 2018 and 2023 and to hit $3.7 billion by the end of the time frame.
Amazon’s Aggressive Stance
The latest move is affirmation of Amazon’s interest in the electronic health records (EHR) market for past several years.
Amazon Comprehend Medical service is approved under the Health Insurance Portability and Accountability Act (HIPAA) which reflects that the company is sincerely dealing with privacy issues and is focused on avoiding security breaches that have been plaguing tech companies of late.
Apart from this service, the company has a healthcare team called Grand Challenge which is focused on projects related to medical records mining and cancer research. Further, the team is working on a project with Amazon Web Services (AWS) called Hera to detect the misdiagnosis of a patient with the help of unstructured data from EHR.
Moreover, Fred Hutchinson Cancer Research Center partnered with Amazon to use the new service in recording the clinical trial results related to cancer studies in order to reduce time taken for analyzing the results.
All these endeavors are likely to help Amazon in rapidly penetrating the global EHR market which as per a report from P&S Market Research, is projected to reach $30.4 billion by 2023 at a CAGR of 5.4% between 2018 and 2023.
Apart from all these, this Zacks Rank #3 (Hold) stock has formed a joint venture with Berkshire Hathaway and JPMorgan Chase (JPM - Free Report) to provide enhanced healthcare facilities to its employees. This marks a significant move of Amazon in penetrating the healthcare sector.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple is a Potent Challenger
Apple’s (AAPL - Free Report) aggressiveness in penetrating the healthcare market is a headwind for Amazon.
Notably, the iPhone maker updated the Health Record section of its Health application in the beginning of the year by partnering with several health care communities.
This update which is based on FHIR (Fast Healthcare Interoperability Resources) standard enables the iPhone users to access their medical records, lab reports and other crucial information from care providers like hospitals and clinics whenever required.
Moreover, Apple's HealthKit allows third-party apps like Garmin Connect, Nike+ Run Club and others to contribute data to Apple Health. Notably, this app allows the users to access their medical records on their iPhones.
Currently, this Zacks Rank #3 stock is looking into a deal with the US Department of Veterans Affairs to simplify hospital visits and improve care and treatment process for the US veterans by providing them access to their health records on iPhones. This will accelerate healthcare delivery times for the veterans.
With these initiatives, Apple intends to make iOS capable enough for storing and sharing of massive medical data.
Further, the robust Apple Watch wearable series is gaining traction, due to advanced fitness tracking technology. The company’s latest watch, Apple Watch Series 4, has a built-in electrocardiogram (ECG) reader that helps in detecting an atrial fibrillation.
Apple Watch 4, which is U.S. FDA cleared device, is also equipped with a built-in accelerometer and gyroscope that tracks the wrist trajectory and impact acceleration to determine if the wearer has taken a fall.
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