Revolution: Can Amazon, Berkshire Hathaway and JPMorgan Really Make US Healthcare System Great Again?

354

Jeff Bezos, Warren Buffett and Jamie Dimon united to change US healthcare system forever.

Keep on reading to know the details.

Three titans of modern industry united

A new partnership between Amazon.com Inc., JPMorgan Chase & Co. and Berkshire Hathaway Inc. has the potential to be one of the most ambitious employer efforts to date to control health expenses.

“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,”  Bezos said in a release. “Hard as it might be, reducing healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort. Success is going to require talented experts, a beginner’s mind, and a long-term orientation.”

Still, there are a lot of questions remain unanswered like what they actually plan to do.

The statement only says the new company will be “free from profit-making incentives and constraints.”

healthcare-bezon-buffett-photo

Bezos, Buffett and Dimon trying to fix health care?

The main argument here is that American healthcare system is too expensive and inefficient, so these three men will try to make healthcare more affordable for their US-based employees.

“The ballooning costs of health care act as a hungry tapeworm on the American economy,” said Buffett. “We share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”

“Nothing in health care changes in short order,” said Gary Claxton, vice president of the Kaiser Family Foundation. “There are many things that are wrong – prices are very high. The provider markets are very consolidated. The insurance markets are very consolidated. Information is not readily available. And a lot of the money is spent on very ill people,” who aren’t necessarily concerned about costs.

Jeff Bezos, Warren Buffett and Jamie Dimon discussed for years the problems involved with providing health care for their employees.

Amazon CEO Jeff Bezos hasn’t said a whole lot about healthcare above considering the potential for artificial intelligence, including Amazon’s voice assistant Alexa, to help with an individual’s health.

Bezos’s personal venture capital arm has invested in a number of biotech companies, including Grail, a company developing a cancer-screening blood test to catch cancer early on, and Zocdoc, Denali Therapeutics, and Juno Therapeutics.

Healthcare stocks went down

The news about future new big player rocked the healthcare stocks.

“The negative impact the announced collaboration is having on healthcare stocks is just the latest example of the outsize influence both Amazon and Berkshire can have on industries they explore”, BI writes.

Here’s the scoreboard:

  • Express Scripts (ESRX): -11.19%
  • CVS Health (CVS): -7.19%
  • UnitedHealth (UNH): -6.73%
  • Aetna (AET): -3.66%
  • MetLife (MET): -1.92%
  • Humana (HUM): -1.06%
  • Cigna (CI): -1.03%
  • Anthem (ANTM): -0.22%

See also:

Summary
Can Amazon, Berkshire Hathaway and JPMorgan Really Make Healthcare System Great Again?
Article Name
Can Amazon, Berkshire Hathaway and JPMorgan Really Make Healthcare System Great Again?
Description
Jeff Bezos, Warren Buffett and Jamie Dimon united to change US healthcare system forever.
Nexter.org
Nexter.org
Nexter.org
/wp-content/uploads/2018/04/logo_nexterbg.jpg
No tags for this post.

Comments are closed.

More News from Nexter