Google raises temperature of health information market

Shares in US health information company WebMD have risen following speculation that Google could buy the business following the departure of its vice president of product management, Adam Bosworth, who had previously headed up health at Google.

According to analyst Outsell, since the discovery in 2005 that 12% of people consult Google before their GP for medical advice, the company has taken the market seriously. So far, though, its initiatives have been disappointing and
based on portal-style service.

A tie-up with WebMD could mark a further shift in focus for Google from search to content ownership and delivery.

If the acquisition goes through, it will follow in the footsteps of Google’s purchase of video service YouTube.

However, Outsell director of market intelligence Kate Worlock said this was
an oversimplification. “YouTube is an aggregator not a content publisher,” she
said, “although there is the opportunity to enhance YouTube and WebMD
through search.”

Health information is set to enter a new phase with the provision of electronic
patient records allowing integration of health information with individual’s
records. This is likely to happen in the UK in two years, and later in the US,
which has many more citizens and no centralised health services.

Worlock said that health information had strong potential for advertisersmarketing
to consumers in a time of need while also targeting practitioners.

Observers are divided as to why Google should seek to purchase, rather
partner, a health information provider. “Google may want to make an acquisition
even if it is expensive as it is cheaper than doing it itself,” said Worlock.
“It depends on how it wants to position itself against Microsoft, which
acquiredMedstory in February.”

Neither Google nor WebMD had responded to requests for comment as
we went to press.