Apple collaborates with Best Buy Health to develop technological resources tailored for elderly consumers in the healthcare sector.
Best Buy Health Faces Challenges in Health Technology Expansion
Best Buy Health, the retail giant's foray into health technology, has expanded its offerings with Lively Health & Safety tools, specifically for older adults using the Apple Watch. However, the journey has not been smooth, as the company has faced significant challenges impacting its workforce and competitive stance.
In 2018, Best Buy ventured into health technology by acquiring GreatCall for $800 million, a move that brought 900,000 paying subscribers to the table. The acquisition paved the way for the introduction of services like Urgent Response, Urgent Care, and the GreatCall Link app, designed to provide peace of mind for older adults.
The Preferred Health & Safety package, a part of the Lively offering, includes features such as Urgent Response, which connects customers with agents to assist in emergencies, Urgent Care, which allows users to speak to a registered nurse or board-certified doctor without an appointment at any time, and the GreatCall Link app, which notifies loved ones in a crisis and provides updates regarding the device.
However, Best Buy Health's healthcare initiatives, including Lively, have struggled to compete effectively or grow as anticipated. This is evident in the company's recent workforce cuts, with the announcement of layoffs of 161 workers in California, and a broader restructuring that saw 5,000 mostly full-time jobs slashed and 2,000 part-time roles added.
This contrasts with other retailers like Walmart, Rite Aid, and Walgreens, which have more established healthcare services and infrastructure, especially in retail pharmacy and in some cases expanding into broader healthcare delivery. Best Buy’s divestment of its home care firm Current Health also underscores the difficulty it has encountered in competing in in-home healthcare services, a space that these competitors are increasingly targeting with broader services and partnerships.
The healthcare workforce landscape shows heightened demand and complexity, especially for specialized roles, which impacts delivery capabilities across providers including those focusing on home health and tech-enabled services. Competitors with more comprehensive healthcare offerings are likely more positioned to benefit from workforce trends and the push toward hospital-at-home programs, while Best Buy Health’s narrower focus and recent workforce cuts reflect operational and competitive pressure.
Despite the challenges, Best Buy Health continues to innovate, announcing the release of multiple health and safety tools for older adults via the Apple Watch. The Live Agent Assist feature, although availability has not been shared, is forthcoming. This feature will enable the Apple Watch to detect a hard fall and initiate a call from a Lively Agent to check on the user and contact family members if necessary.
The company's strategy is to match doctors with patients through virtual care services, a move that aligns with the ongoing shift towards digital healthcare. As Best Buy Health navigates these challenges, it remains to be seen how it will fare in the competitive landscape of health technology.
[1] Source: CNBC [2] Source: TechCrunch [3] Source: McKinsey & Company [4] Source: Forbes
- Best Buy Health's expansion into health technology, with the introduction of Lively Health & Safety tools, has been facing challenges in the competitive industry.
- The acquisition of GreatCall in 2018 brought 900,000 paying subscribers, but the subsequent workforce cuts and restructuring have impacted the company's growth.
- The Preferred Health & Safety package, part of Lively's offerings, includes features like Urgent Response, Urgent Care, and the GreatCall Link app, designed for peace of mind for older adults.
- Best Buy Health's healthcare initiatives, such as Lively, have found it difficult to compete effectively with retailers like Walmart, Rite Aid, and Walgreens, which have more established healthcare services and infrastructure.
- Competitors' comprehensive healthcare offerings are better positioned to benefit from workforce trends and hospital-at-home programs, while Best Buy Health's workforce cuts reflect operational and competitive pressure.
- Best Buy Health continues to innovate, with the announcement of multiple health and safety tools for older adults via the Apple Watch, including the Live Agent Assist feature.
- The company's strategy involves matching doctors with patients through virtual care services, aligning with the ongoing shift towards digital healthcare.
- On one hand, Best Buy Health faces significant challenges, but on the other, it remains to be seen how it will navigate these challenges and fare in the competitive health technology landscape.
- Sources like CNBC, TechCrunch, McKinsey & Company, and Forbes have reported on Best Buy Health's struggles and innovations in the health technology sector.
