Marking the latest step in the hotly contested drugstore market, Walgreens recently unveiled a partnership with Microsoft that enables its pharmacy patients to securely download their prescription histories to personal Microsoft HealthVault records.
Under this arrangement, Walgreens' pharmacy customers can link their prescription information to other health records, a step designed to improve record-management and allow patients to easily share information between medical providers, according to a press release by the Deerfield, Ill.-based company. In May 2009, competitor CVS Caremark took the wraps off a similar agreement with Google Health Rx.
For four years, Google has used Software as a Service (SaaS) for its consumer applications. Under SaaS, a service provider owns and operates the applications, which a user launches within a web browser. Under this model, individuals and organizations no longer must buy and maintain applications; instead, they generally pay a monthly fee to the service provider who then is responsible for ensuring the application is available, usable, secure and up-to-date. Some SaaS applications are free, and generate revenue through advertising or other means. Examples of Google's SaaS strategy include Gmail, Docs, Voice, Alerts, Wave, Calendar and Health Rx.
The numbers seem to show SaaS is a success: A comparison between e-mail services on the Web reported by TechCrunch in January 2009 and August 2009 shows Gmail, just out of beta testing, close to reaching the number two spot. In six months, Gmail grew 20 percent to 37 million monthly unique visitors, Microsoft's Windows Live Hotmail grew 8 percent to 47 million, and Yahoo increased by 14 percent to 106 million.
Electronic medical records (EMRs) are attracting attention - and dollars - from everyone from government to individual medical practices, making it an attractive market for Google. Existing EMR vendors are modifying their applications to meet the requirements legislated under the 2009 Health Information Technology for Economical and Clinical Health Act(HITECH) These modifications include a criteria for "meaningful use" and certification process still in discussion at multiple federal agencies. In addition, EMR vendors must meet HITECH and Health Insurance Portability and Accountability Act (HIPAA) regulations for patient health records' privacy. Under HITECH, the Federal Trade Commission(FTC) represents the new government oversight of electronic transmission of EMRs.
As EMR vendors scurry to meet HITECH regulations and deadlines, Google may be well-positioned to leverage its existing SaaS strategy and proven track record for creating consumer-friendly SaaS applications. Could Google, then, be within reach of making Health/Health Rx the nationwide Health Information Exchange mandated by HITECH?