Best Buy goes all in on healthcare and at-home care for baby boomers

The news

Last week, Best Buy announced it had acquired UK-based Current Health, which specializes in remote patient monitoring and telehealth. This follows Best Buy’s $800 million acquisition of Lively (formerly GreatCall) in 2018 and underscores its push into digital health. 

Current Health offers a home hub and wearables that collect data, as well as integration with medical device companies and electronic health records. Best Buy didn't disclose terms of the deal other than the fact that the company paid cash.

Best Buy's big bet on healthcare

The acquisition is no coincidence, but part of the retail giant’s ambitious bet on the healthcare market. Back in 2019, Best Buy outlined their reasons for expanding into the healthcare market: The company believes technology is turning the home into a healthcare hub.

The focus is on seniors, a group Best Buy wants to make sure can continue to live at home longer through technology and health services. At that time, they set the goal to serve 5 million seniors at home by 2025. 

This was a promising bet. Morgan Stanley estimated two years ago that healthcare could bring Best Buy $11 billion to $46 billion in potential long-term revenue. By 2025, revenues could reach $500 million to $2 billion. 

Our perspective

Helping seniors stay at home longer by way of technology is a huge market. An aging population, better medical care, and falling birth rates have resulted in a greater population of people over 50. By 2023, there will be 54 million U.S.-based seniors, and 90% of them want to stay at home. 

The MedTech market of the future is not a walled garden. Established medical technology companies will be competing with consumer electronics brands. It is no longer only about winning doctors and clinics, but also about the patients and their homes. 

Disruption is not inevitable. While other brick-and-mortar retailers suffered heavy losses in the ecommerce boom, Best Buy took action early and leveraged its strength to conquer new markets.