KC’s Cerner Corp. deepens its ties with Amazon in rollout of Halo Band fitness tracker
Cerner Corp. has deepened its relationship with Amazon as the tech giant doubles down on the health and wellness space.
Amazon on Thursday introduced its Halo Band, a wearable device that helps consumers track sleep, physical activity and emotional well being. The move challenges incumbents Apple, Fitbit and Olathe-based Garmin, all of which have offered fitness trackers for years.
But it also underscores Cerner’s growing business relationship with Amazon: Technology from North Kansas City-based Cerner will allow consumers to share their health data directly with physicians. And Cerner will use the device for customers using its existing wellness programs.
“It’s a step along the way of Cerner and Amazon collaborating to build new-to-industry capabilities,” said David Bradshaw, Cerner’s senior vice president of consumer and employer solutions. “We’ve got to extend the ecosystem of healthcare.”
Earlier this year, Cerner executives pointed to the company’s relationship with Amazon as key to future growth. Last summer, Cerner announced it had selected Amazon Web Services as its preferred cloud provider, a move it said would save the healthcare IT firm operational costs while also improving performance of Cerner’s technology.
Amazon in 2018 acquired online pharmacy PillPack for $753 million, demonstrating its interest in the healthcare industry. That year, it also joined with JPMorgan and Berkshire Hathaway to create Haven Healthcare, aimed at providing technology-driven and less expensive care.
Cerner, the largest private employer in the Kansas City area, has been undergoing a so-called “transformation” in recent months. The firm initially pioneered the work of digitizing the nation’s paper health records. But that domestic market has largely completed the move away from paper records and Cerner and its competitors have saturated the market.
That has pushed Cerner to look for ways to diversify its business model.
Bradshaw said the company continues to work with Amazon on future innovations. He said the company is currently testing new capabilities with Amazon’s Alexa smart speaker. It recently received regulatory approval to transmit secure patient health information.
“This won’t be the last one,” Bradshaw said of Cerner’s projects with Amazon.
In announcing the Halo app and band, Amazon leaders noted that the last decade has seen an increase in digital health services and devices, but not a corresponding improvement in the health of the U.S. population.
“We are using Amazon’s deep expertise in artificial intelligence and machine learning to offer customers a new way to discover, adopt, and maintain personalized wellness habits,” Dr. Maulik Majmudar, Amazon Halo’s principal medical officer, said in a news release. “Health is much more than just the number of steps you take in a day or how many hours you sleep.”
The Amazon product will track things like sleep and steps. But it also includes more sophisticated metrics. It will measure body fat percentage, rather than just body mass index. Instead of just counting steps, it will award points based on the intensity and duration of movement. And one feature will rely on machine learning to analyze consumers’ voices so they can better improve communication and relationships.
And it’s an active device: It doesn’t just track what consumers do, but offers advice. It might suggest cutting out afternoon caffeine intake to improve sleep or suggest a certain workout program. To power those capabilities, the company worked with the Mayo Clinic, Orangetheory Fitness and WW, formerly Weight Watchers, among other organizations.
“Think of it as an AI-driven feedback loop on your lifestyle, your activity, your sleep, your tracking,” Bradshaw said.
The water-resistant device does not have a screen or a watch face. Its battery is supposed to stay charged for up to seven days.
The first generation of the Halo Band is available in three fabric colors and is listed at $99.99. Customers can request early access to the device now, which is being promoted at a price of $64.99, which includes six months of Halo membership. After that, the membership costs $3.99 per month.
Consumers don’t have to share personal data with healthcare providers. But Bradshaw said that feature can help doctors by seeing patients’ day-to-day habits.
“I think the feedback mechanism that the app gives you off of your data will start to create a sense of accountability,” he said. “And if you choose to share this data with your physician, then you’re kind of signing up to own that data. You’re accountable to that.”
This story was originally published August 27, 2020 at 4:41 PM.
