• News
  • Money

Amazon, JPMorgan and Berkshire Hathaway to create new healthcare company

Amazon has already entered the health care field, seeking state licenses to operate pharmacies.

Details were scant in a short joint statement on Tuesday.

Amazon, Berkshire Hathaway and JPMorgan are teaming up to form an independent, nonprofit venture that'll be focused on healthcare for their U.S. employees. "With health care, they capture the next, most valuable layer of the ecosystem - the system that keeps us well and healthy".

Shares in U.S. health insurers UnitedHealth, Anthem and Cigna Corp all fell over 5% in early trading following the announcement.

Also playing a factor in the market's reaction is the significant size of the companies involved in the three-way partnership. The initial objective of the new company will be to find technology solutions to simplify the health-care system.

US health care spending grew 4.3 percent in 2016, according to the Department of Health.

Amazon.com founder and CEO Jeff Bezos presents the company's first smartphone, the Fire Phone, on June 18, 2014 in Seattle, Washington. In the statement, JPMorgan CEO Dimon said the initiative could ultimately expand beyond the three companies. Yet, Amazon, Berkshire Hathaway, and JPMorgan have, in Dimon's words, "extraordinary resources" that can be committed to "create solutions that benefit our US employees, their families, and, potentially, all Americans". The federal Affordable Care Act requires all companies with 50 or more full-time employees to offer it. In much of the world, the most effective health care system is single-payer, where the government is responsible for providing health care to all citizens.

And in January, a group of hospitals, including Salt Lake City-based Intermountain Healthcare, Ascension, SSM Health, and Trinity Health, along with the Department of Veterans Affairs health administration (a group that in total represents 450 hospitals) announced their plans to create a nonprofit generic drug company. Combs also joined JPMorgan's board in 2016. CVS Health announced its acquisition of Aetna in December, which brought together a pharmacy and insurance business that industry experts say could make it less vulnerable to any disruption from Amazon.

One of the highest ranking women at Amazon, Galetti has worked in human resources at the e-commerce giant since mid-2013, becoming senior vice president nearly two years ago, according to her LinkedIn profile. CNBC reported in July that a health tech team at Amazon was working on medical records and telemedicine. Previously Galetti worked in planning, engineering and operations at FedEx Express, the cargo airline of FedEx Corp.

Spencer Perlman, an analyst at Veda Partners, said the statement by Amazon, Berkshire Hathaway and JP Morgan is "nothing more than a promise to do something different and provides no detail on what the companies plan to do or how they plan to do it".

The US still spends far more on healthcare than other wealthy nation as it sees decline in general health over the last three decades. Buffett has long bemoaned the cost of USA health care.

Buffett has always been critical of the USA healthcare system, comparing it to a "hungry tapeworm" gnawing at the national economy.

When Jeff Bezos, Warren Buffett and JPMorgan's Jamie Dimon say they want to improve health care for potentially millions in the USA, among the first questions will be: Where to start? Their group could not provide solution to the problem but they also do not admit it as inevitable.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


Top 5 moments from the 2018 Grammy Awards

Others argued that Mars is a person of color since he is a Hawaiian native and is of Puerto Rican and Filipino descent. Patti LuPone performed the classic song "Don't Cry For Me Argentina", giving musical fans something to perk up about.

Some in GOP return Wynn money amid sex claims

It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment. They just need to take the company's market capitalization and divide it by the company's total sales over the past 12 months.

Alonso confirmed for WEC

So he'll get more seat time in the No8 Toyota TS050 Hybrid he'll share with S├ębastien Buemi and Kazuki Nakajima than WEC's headline race.

Rob Gronkowski declares himself 'ready to roll' in Instagram post

It remains unclear whether his status for next weekend's Super Bowl meeting with the Philadelphia Eagles is affected. Come Sunday, however, all signs point to Gronkowski playing, and that's good news for the Patriots .

Catalonia Postpones Vote for New Regional President, Sticks with Puigdemont

The constitutional court also said he must get permission to attend the session, however it is not clear whether he will seek it. However, he wants to rule the region, after making a deal to lead a separatist coalition, following elections last month.

Stock Monitor on Exxon Mobil Corporation (NYSE:XOM)

Maple Capital Management Inc. owned approximately 1,320.64% of Exxon Mobil worth $4,587,000 at the end of the most recent quarter. The firm has a market cap of $368,370.00, a P/E ratio of 28.29, a PEG ratio of 1.27 and a beta of 0.82. (NYSE:TREX) is 3.00000.

North Carolina suspends freshman guard Jalek Felton

It didn't release further details citing federal privacy laws, including the reason for the suspension and its duration. North Carolina has suspended former Gray Collegiate standout Jalek Felton, the school announced Tuesday.

Kim Kardashian Shows off Her 'Bo Derek' Braids

And after being celebrated for her braids, Derek came to the defense of Kylie Jenner in 2015 when she too wore cornrows. The images didn't sit well with some who accused her of darkening her skin tone and going overboard with the editing.

Girl's Daytime Kidnapping Captured in Chilling Footage

Authorities are now attempting to determine if the suspect has other victims that they don't know about. According to the Attorney's Office, Protho parked the vehicle in an alley and assaulted the child.

Tom Hanks to play Mr. Rogers in movie based on his life

TriStar just acquired worldwide rights to the project, which will start production in the fall. More than ever, Mister Rogers' unwavering message of love and hope is needed now.