Photo by James Duncan Davidson/Flickr
Berkshire Hathaway of Warren Buffett, JP Morgan, and Amazon are forming an unusual partnership in order to launch a new employee healthcare company in the United States.
The standalone firm will be dedicated to “improving employee satisfaction and reducing costs” and will be “free from profit-making incentives and constraints” with a focus on how technology can make that happen.”
The chairman and chief executive of Berkshire Hathaway, Warren Buffet, stated: “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. 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.”
Jeff Bezos, the founder and chief of Amazon, acknowledged the complexity of the healthcare system of the United States and that the new project would be a tricky one.
“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,” stated Bezos.
The plans are still in its early stage. However, it will be jointly spearheaded by an investment officer of Berkshire Hathaway, Todd Combs; a managing director of JPMorgan Chase, Marvelle Sullivan Berchtold; and a senior vice president at Amazon, Beth Galetti.
The said move sent the shares of healthcare companies in the United States sliding. Express Scripts opened by over four percent lower, CVS and United Health were down by more than six percent and Anthem by more than seven percent as the market of the United States opened.