HEALTHCARE REDEFINED: AMAZON, BERKSHIRE HATHAWAY AND JP MORGAN CHASE’S RESPONSE TO U.S. HEALTHCARE
“The goal of real healthcare reform must be high-quality, universal coverage in a cost-effective way.”
– Bernie Sanders
Major news is brewing in the healthcare industry: Three Fortune 100 companies, Amazon, Berkshire Hathaway and JPMorgan Chase, are making headlines, with their plans to launch a new healthcare venture.
Details of the New Health Company
According to the official press release in Business Wire, the partnership aims is to improve employee satisfaction and reduce costs. How? “Through an independent company that is free from profit-making incentives and constraints.”
At this point, the corporate giants haven’t released too many details about the initiative. What they did stress, was the “initial focus … on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”
In their statements, the chief executives presented different aspects of the broader vision:
- Warren Buffet, CEO of Berkshire Hathaway, spoke about checking “the rise in health costs” and “enhancing patient satisfaction and outcomes”
- Jeff Bezos, CEO of Amazon, dealt with the complexity of the healthcare system and “improving outcomes for employees and their families”
- Jamie Dimon, CEO of JPMorgan Chase, focused on “transparency, knowledge and control,” vis-à-vis managing healthcare
Fixing all these issues is no easy task, but the CEO’s are optimistic and are planning for the long-term.
The partnership brings tremendous power to the healthcare arena. According to the New York Times, the corporate behemoths employ a total of 1.2 million workers. In-terms of individual strengths, Amazon excels in logistics and technology, Berkshire Hathaway in insurance and JPMorgan Chase, “the largest bank in the country with more than $2 trillion in assets,” in finance. On the market level, Bloomberg found the combined market capitalization of the three to reach $1.6 trillion.
Relevance to SNF Healthcare
In the words of Fortune, “The move comes amid growing speculation that Amazon is likely to enter the prescription drug business.” The speculation seems to be on target.
Although the preliminary plan seeks to help the organizations’ employees, Dimon, sees broader implications ahead: “The three of our companies have extraordinary resources, and our goal is to create solutions that benefit … potentially, all Americans.”
Is this, indeed, the first step towards impacting healthcare for all Americans? Time will tell. But, the forecasts seem to be pointing in that direction. According to Bloomberg, “The plan … seems almost certain to set its sights on disrupting the broader industry” and “pressure profits for middlemen in the health-care supply chain.”
The question remains as to how the move may impact nursing care. Which issues might technology be able to solve? How can costs be lowered? What changes can we expect, in the long-term?
Which changes in skilled nursing healthcare would you like to see in the future?
Please share in the comments below.