Amazon, JPMorgan and Berkshire Partner To Disrupt Healthcare
Gunning For New Efficacies In Healthcare Insurance, Free From Profit-making Incentives
In response to the mounting healthcare costs that have been putting a major dent on corporate profits for years, the three corporate behemoths announced last week, plans to form an independent healthcare company for their more than 500, 000 U.S. employees.
The new venture brings together Amazon, the online retail giant; Berkshire Hathaway, the holding company led by the billionaire investor Warren E. Buffett; and JPMorgan Chase, the largest bank in the United States by assets.
According to Reuters, the new company will be independent and “free from profit-making incentives and constraints.” Instead, the new venture’s initial focus would be on technology that provides “simplified, high-quality and transparent” care.
Though no concrete plans have been set in place, the companies aim to utilise technologically-driven solutions to bring down costs.
Healthcare industry experts say the new entity could potentially negotiate directly with drugmakers, doctors and hospitals and tap into their vast databases to eventually lower healthcare costs. This would mean undercutting the industry’s “middlemen,” from health insurers to pharmacies and benefits managers, according to Reuters.
The announcement that these industry giants will be entering the health care insurance or the health care coverage space landed like a thunderclap, as stocks for insures and other major health companies like UnitedHealth Group nosedived.