Amazon (NASDAQ:AMZN) is set to announce a strategic partnership with Omada Health, a digital health platform dedicated to assisting users in managing chronic diseases. This collaboration, scheduled to be revealed during the annual JPMorgan healthcare conference in San Francisco, underlines Amazon’s ongoing efforts to tap into the expansive $4 trillion healthcare industry.

The partnership aims to leverage Amazon’s customer data to identify potential Omada customers based on their purchasing history. However, it is crucial to note that the collaboration is limited to existing Omada customers who receive benefits through their employers or other insurance plans. Amazon’s Health Services vice president, Aaron Martin, expressed the hope that the program would contribute to lowering overall healthcare costs by empowering patients to better manage their health.

Omada Health’s CEO, Sean Duffy, explained that the idea for the partnership was conceived over a dinner conversation between long-time business friends about a year and a half ago. The program involves Amazon prompting users to check their eligibility for health disease management services through Omada when purchasing items such as a Bluetooth weighing scale or other equipment indicative of potential medical needs.

Customers can enter their details to determine eligibility, and Amazon will facilitate the process of connecting with Omada. If a person is already receiving the benefit, they can opt to save their information for future reference. Importantly, customers have the option to remove their data if they choose not to retain it on Amazon.

While specifics about the financial arrangements between Amazon and Omada were not disclosed, both parties emphasized the potential benefits of the collaboration. Duffy clarified that there is no two-way street or cross-promotion, and Omada maintains similar relationships with other retail vendors. The partnership, while not exclusive, aligns with Amazon’s broader strategy of seeking collaborations to navigate the complex healthcare landscape.

Omada Health, established in 2011, specializes in chronic care virtual management services, covering areas such as diabetes, heart health, musculoskeletal issues, GLP-1, and obesity management. With a notable partnership with Cigna since 2015, Omada has enrolled over a million members through employer, university, and county benefits plans. The collaboration with Amazon is part of the e-commerce giant’s plan to add more partners to address various chronic health and disease management needs.

The live program, operational for a few weeks, aims to enhance customer awareness of health benefits available to them, aligning with Amazon’s vision of making healthcare more integrated into daily life. Both companies believe that a successful experience for customers could lead to increased engagement with Amazon’s platform for health-related solutions.

While details regarding the financial aspects and the potential expansion of the program remain undisclosed, the collaboration underscores Amazon’s strategic approach to healthcare, emphasizing the need for partnerships to bring about meaningful change in the industry.

Featured Image: Unsplash @ Christian Wiediger

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