Amazon, JPMorgan, Berkshire Hathaway to Form Healthcare Company

Company leaders hope partnership will lower healthcare costs

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Amazon, JPMorgan, Berkshire Hathaway to Form Healthcare Company

A new company threatens to shake up healthcare

A new company threatens to shake up healthcare

Photo by Creative Commons (Public Domain)

A new company threatens to shake up healthcare

Photo by Creative Commons (Public Domain)

Photo by Creative Commons (Public Domain)

A new company threatens to shake up healthcare

Tom Hermanek, Managing Editor

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Jan. 30, 2018 — In 2017, American healthcare spending totaled $3.3 trillion, or nearly 18 percent of the country’s gross domestic product. This figure, forecast to reach 20% of the total GDP by 2025, is the highest among developed countries.

A new partnership between online retail giant Amazon, JPMorgan bank, and multinational conglomerate Berkshire Hathaway could put a dent in American healthcare spending.

“The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” said Berkshire Hathaway CEO Warren Buffet in a Tuesday press release.

Buffett outlined the vision behind the unlikely partnership: “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,” said Buffett.

Company leaders said Tuesday that the organization would achieve this goal by remaining “free from profit-making incentives and constraints,” and that the company’s first task would be to develop “technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”

The announcement caused traditional U.S. healthcare stocks to fall during Tuesday’s trading, as concerns about how leaders like Buffett Amazon CEO Jeff Bezos would shake up the industry.

“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” Bezos said Tuesday. “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.”

Tom Hermanek - Managing Editor

Tom became a member of The Flightline in January of 2015. He is a senior who is involved in mock trial and swimming. Off campus, Tom spends his time with friends or working at Starbucks. You can email him at [email protected]