Cognizant expands its healthcare vertical capabilities horizontally

The triple aim of care (reducing the cost of care, enhancing the experience of care, and improving health outcomes) has all been headed in the wrong direction for several years (see Exhibit 1). While the Centers for Medicare and Medicaid Services (CMS) and state health and human services agencies have crafted and pursued policies in collaboration with the broader healthcare ecosystem (health plans, providers, and life sciences) aimed at improving the triple aim in some form or shape over time, the outcomes show that it has fallen short. So, various enterprises not native to healthcare have stepped into the breach to leverage technologies and adopt creative approaches to make a difference. Cognizant is leveraging its many decades of experience and capabilities to partner with non-traditional healthcare enterprises in their journey to improve the triple aim of care.

Exhibit 1: The triple aim of care in the US has been in decline for a long time now and urgently needs action to reverse…not words

Source: CDC, OECD, CAHPS, HFS Research, 2024

Some enterprises not native to healthcare think a paradigm shift may help address the triple aim of care

Enterprises across multiple industries (see Exhibit 2) have taken an interest in healthcare, driven by the opportunities rendered by a $4.2 trillion US healthcare market, the value proposition they think they can deliver, and the general health of the nation’s population, including their employees.

Enterprises in the retail sector, including Walmart, Kroger, and Dollar General, have developed clinics for primary care in or by their stores, while others like Amazon have done that plus expanded that care through OneMedical. Most of these enterprises also have pharmacies, helping drive the cost of medications lower.

Exhibit 2: A variety of non-healthcare companies across market segments are leaning in to address healthcare-specific challenges

Source: HFS Research, 2024

In other parts of the market, Uber is addressing non-emergency medical transportation in collaboration with several health plans. MorganHealth is leveraging its deep pockets to invest in healthcare companies to improve care delivery, while telcos (Verizon, AT&T, COX) are driving 5G connectivity at healthcare facilities, hospitals, and homes to deliver high-fidelity healthcare. Big tech continues to push the boundaries of leveraging data and analytics to improve their understanding of our physiology, which can lead to better therapies (Google’s Verily) or be the foundational platform to build capabilities (Salesforce). The key is that enterprises are exploring various options aligned with their native capabilities (floor space, direct-to-consumer channels, logistics, technology) that can be extended to help improve some or all elements of the triple aim of care.

Cognizant recognizes the need to enable its capabilities that connect the entire healthcare ecosystem to address a new market

Cognizant has more than three decades of deep healthcare experience and significant capabilities, including clearing house (health data exchange), revenue cycle management, digital health services, business processing as a service (BPaaS), and healthcare advisory. These capabilities align with enterprises’ needs to build the right healthcare technology stack and address their specific objectives.

They need to make informed decisions about the path they choose, whether as bold pioneers developing a new paradigm or attempting to improve the existing paradigm with better solutions. In any number of approaches enterprises take, they will likely need the help of a tech and service partner who knows its way around these dense healthcare woods.

Cognizant recognizes that a new market of cross-industry enterprises wanting to address healthcare has emerged, and it is adapting its organization and go-to-market approach. It will retain its vertical go-to-market to address its current healthcare clients, and it will address the emerging market’s needs by leveraging healthcare capabilities. This move will combine its deep healthcare expertise and capabilities with its relationships across multiple industries and clients who are attempting to address the market’s healthcare needs.

The Bottom Line: Cognizant can educate, equip, and connect the dots for enterprises that want to help improve the state of healthcare in the US and beyond.

Cognizant is strategically setting itself up for prolonged success in the healthcare market as the landscape continues to shift. This initial foray into helping enterprises not native to healthcare address healthcare challenges will help it refine its capabilities portfolio while delivering to improve the triple aim outcomes. In the longer term, it can use the same construct to address self-insured employers, which is the largest segment of the market—and growing. Employers are keenly looking for new partners as they seek alternatives to deliver better health and care to their employees.