Amazon, Berkshire Hathaway, and JPMorgan Chase are teaming up to take on healthcare. In a move that could shake-up the healthcare industry, the three massive companies announced Tuesday that they’ll be launching a new and independent healthcare company to improve employee satisfaction and to lower costs for US-based employees.
“The ballooning costs of healthcare act as a hungry tapeworm on the American economy. Our group does not come to this problem with answers but we also do not accept it as inevitable,” said Berkshire Hathaway Chairman and CEO Warren Buffett in a released statement. “Rather, 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.”
The three companies—which employ 1.1 million workers combined—will pursue launching an independent company that will be free from profit-making incentives and constraints. The group also hopes to draw on its combined capabilities and resources to take a fresh approach to these critical matters, the group said in a statement.
“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” said Jeff Bezos, Amazon founder and CEO. “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.”
The initial focus of the new company will be on technology solutions that will provide employees and their families with simplified, high-quality, and transparent healthcare at a reasonable cost, the group said in a statement.
“Our people want transparency, knowledge, and control when it comes to managing their healthcare,” Jamie Dimon, CEO of JPMorgan Chase said. “The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans,” he added.
The idea—still in its early stages—will be jointly spearheaded by investment officers at Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon. The longer-term management team, headquarters and key operational details are yet to be determined.