Amazon (AMZN) is joining forces with Omada Health to introduce a health monitoring initiative, sources reveal. Set to be announced at the JPMorgan healthcare conference, this move underscores Amazon's ongoing efforts to secure a share of the expansive $4 trillion healthcare industry.

Scheduled for a 9:00 a.m. unveiling, the partnership aims to leverage Amazon's vast customer base by identifying potential Omada Health customers based on their Amazon purchases. However, it's important to note that the collaboration is exclusive to existing Omada customers who receive benefits through their employer or insurance plan.

Aaron Martin, Vice President of Amazon Health Services, expressed Amazon's goal to reduce overall healthcare costs by aiding patients in better managing their health. He highlighted the tendency of Americans to overlook the full scope of benefits offered by their employers, leaving valuable services untapped.

Omada Health's CEO, Sean Duffy, shared that the collaboration emerged from a discussion over dinner between long-time business associates about a year and a half ago. Duffy explained that Omada's size at that time propelled the conversation beyond the scope of a pilot program.

How Amazon Health program works:

• Amazon identifies potential customers based on their purchases, focusing on health-related items.

• Customers purchasing relevant items, like a Bluetooth weighing scale, receive a prompt to check eligibility for health disease management services through Omada.

• Customers enter personal details to determine eligibility, and Amazon pings Omada to verify benefits.

• Customers can choose to have Amazon save their information for potential future eligibility, with an option to remove the data.

While Amazon's collaboration with Omada is not exclusive, the partnership is geared towards expanding its new program to address various chronic health and disease management needs. Amazon Health Services Vice President, Aaron Martin, emphasized that the initiative aligns with Amazon's strategy of leveraging its daily use by people for pervasive healthcare engagement.

The partnership has been operational for a few weeks, and while details about customer engagement levels remain undisclosed, both companies are optimistic about the potential benefits. Financial details of the partnership and the specifics of Amazon's gains are not currently disclosed, but both parties affirm an existing economic relationship.

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