- Amazon, JP Morgan Chase & Co., and Berkshire Hathaway have announced a long-term partnership to form an independent company that focuses on cost-effective healthcare for employees.
The company will aim to remove profit-making incentives for healthcare and use technology solutions to provide transparent and streamlined high-quality care.
Amazon CEO and Founder Jeff Bezos believes that the new company can effectively reduce the burden of healthcare on consumers and empower individuals to properly manage their healthcare decisions.
“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” Bezos said.
“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 new partners believe their companies can provide the scale needed in order to create a healthcare company that uses innovative approaches to combat healthcare issues such as rising costs and ensuring high-quality healthcare for individuals.
“Our people want transparency, knowledge and control when it comes to managing their healthcare,” said JP Morgan CEO Jamie Dimon. “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.”
The unnamed independent company is still in early planning stages, and the participants are open to new ideas that will cut costs and better serve consumers.
“The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” said Berkshire Hathaway Chairman and CEO Warren Buffett.
“Our group does not come to this problem with answers. But we also do not accept it as inevitable. 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 initial efforts to form the company are spearheaded by leaders in each organization including Todd Combs an investment officer of Berkshire Hathaway, Marvelle Sullivan Berchtold, a Managing Director of JPMorgan Chase & Co., and Beth Galetti, a Senior Vice President at Amazon.