Tech Giants Venture Deeper Into Huge U.S. Health Care Industry

Rich countries devote staggering sums of money into health care. Advanced economies typically spend roughly 10% of GDP on keeping their residents healthy, a figure that is increasing as populations age.

Photo Insert: In 2021, America's five digital behemoths spent more than $3 billion on speculative health-care bets—and may have spent even more in hidden transactions.

America's tangled health-industrial complex consumes 17% of GDP, or $3.6 trillion per year, The Economist wrote.

The bulk and inertia of the American system, which is sustained by the drugmakers, pharmacists, insurers, hospitals, and others who benefit from it, have long insulated it from disruption. Its size and stodginess also explain why big tech is lusting for it. Few other businesses provide a prospective market large enough to sway the trillion-dollar technological titans.

In 2021, America's five digital behemoths spent more than $3 billion on speculative health-care bets—and may have spent even more in hidden transactions. Some of their earlier efforts in health are beginning to pay off.

Amazon operates an online pharmacy, and its telemedicine services cover nearly all of America, if not the majority of it. Apple's smartwatch continues to gain new health capabilities, most recently medication tracking.

Meta abandoned its own smartwatch plans earlier this year, but it still provides fitness-related entertainment through its Oculus virtual-reality goggles. Microsoft, like Amazon, is growing its list of health-related cloud-computing solutions through AWS, its cloud unit.

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