Amazon, Berkshire Hathaway and JPMorgan Chase & Co. have revealed they will partner on ways to address healthcare for their US employees, with the aim of improving employee satisfaction and reducing costs.
The three companies will pursue this objective through an independent company that is free from profit-making incentives and constraints. The initial focus of the company will be on technology solutions that will provide US employees and their families with simplified and transparent healthcare at a reasonable cost.
The group hopes to draw on its combined capabilities and resources to take a fresh approach to the challenges of healthcare.
Berkshire Hathaway chairman and CEO, Warren Buffett, said: “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. 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.”
Jeff Bezos, Amazon founder and CEO, commented: “The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty. 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.”
Jamie Dimon, chairman and CEO of JPMorgan Chase, said: “Our people want transparency, knowledge and control when it comes to managing their healthcare. The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans.”
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The effort is in its early planning stages, with the initial formation of the company jointly spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon.
The players said the longer-term management team, headquarters location and key operational details will be communicated in due course.