Amazon.com, Inc. (NASDAQ:AMZN), Berkshire Hathaway Inc. (NYSE:BRK.A,BRK.B) and JPMorgan Chase & Co. (NYSE:JPM) are teaming up on healthcare.
The three companies will be working together in an effort to reduce the costs of healthcare for their employees in the U.S. They will do this by creating a new, independent company that will focus on technology solutions to high healthcare costs.
The new company from Amazon, Berkshire Hathaway and JPMorgan will be “free from profit-making incentives and constraints.” The companies note that these plans are still in the early stages. The initial creation of the company will be lead by Amazon’s Beth Galetti, Berkshire Hathaway’s Todd Combs and JPMorgan’s Marvelle Sullivan Berchtold.
Due to the early nature of the plans, there are still several details about the new company that have yet to be nailed down. This includes where its headquarters will be located at, members of its long-term management team and key operational details. Amazon, Berkshire Hathaway and JPMorgan hope to provide more of these details when they are able.
“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,” Berkshire Hathaway Chairman and CEO Warren Buffett said in a statement. “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.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
