Medical - - Feb 01,2018
Amazon, Berkshire Hathaway and JP Morgan are joining hands to form a healthcare company with a desire to cut costs for their employees in the US.
It has been revealed that, this independent firm wouldn’t be focusing on “profit-making incentives and constraints". Amazon further added, the aim is to provide healthcare to the staff at realistic cost.
This announcement has ignited fears that Amazon might disrupt the healthcare sector similar to the way it has done in the retail sector.
At present, more than 1.2 million employees are spread out worldwide in Amazon, Berkshire and JPMorgan Chase. This could be a huge step to rationalize terms to what their workers are spending on prescription drugs, hospitals and outpatient care. These firms are regarded as the three biggest private employers in the United States, together employing more than 500,000 staff.
Jamie Dimon, chairman and chief executive of JPMorgan Chase said, "Our people want transparency, knowledge and control when it comes to managing their healthcare." Dimon further added, the three companies hold “extraordinary resources”, with the goal to build solutions which prove advantageous to the US employees, as well as their families.
The company's formation initially would be controlled by Todd Combs, who is an investment officer working under Berkshire Hathaway. The other members include Marvelle Sullivan Berchtold, managing director at JPMorgan Chase; and senior vice president at Amazon, Beth Galetti. The long-term management team as well as plans for future operations are still pending to be confirmed.
According to Amazon’s boss, Jeff Bezos, the healthcare sector is complex, and it is a challenge to enter this system staying aware about the “degree of difficulty”.