Teamwork to form new company
Jeff Bezos CEO of Amazon, Warren Buffet Chairman of Berkshire Hathaway, and Jamie Dimon CEO of JP Morgan Chase announced in statement last week that the three companies will be forming a joint venture to tackle the biggest problems in healthcare. The initial focus of this company will be providing technological solutions to the issues of high-quality healthcare at a reasonable cost. While the goals of the fledgling company may not be new. The resources, and overall size that these companies possess make them a force to be reckoned with on the healthcare landscape.
Resources to the rescue
The three companies employ over a million people in the United States. An insurance pool of that size can make waves across healthcare. This also gives them huge leveraging power when it comes time to the creation of insurance models, and a wealth of creativity when it comes to innovation. In the briefing that was released by Berkshire Hathaway also noted that the company will be “free from profit-making incentives and constraints”. Sam Hanna director of the Analytic Master’s Program at George Washington University told Men’s Health on the issue “that it might act as a shot in the arm of other insurance companies”. Which Hanna also notes is “slow to innovate”.
Can they do it?
However, the challenges of healthcare are foreign to the three companies. While the size of these three companies can make them a powerhouse in managed care. They have little expertise in the field. Jeff Bezos remarks that “success is going to require talented experts, and beginner’s mind, and long-term orientation”. Innovation in the field and success of the this coordinated effort could be what the U.S. economy needs. It is well known that the cost of healthcare in the United States is very high. A remarkable 18% of the country’s GDP is dedicated to healthcare. The effort of these three conglomerates might just be what we need the bring that down.
What about now?
Much is unknown at the current moment of what is in store for this company, or how it will affect the market. While we wait to see what happens. Hanna predicts that “the three powerhouses will be able to merge their strengths in technology, innovation, analytics, underwriting and insurance, and mergers and acquisitions” to hopefully “build something new. Whatever happens you can be sure that Strategic Healthcare Partners will be at the forefront constantly changing healthcare landscape.