Corporate giants to create new-look healthcare venture
January 31, 2018
In a move that sent early shockwaves through the healthcare industry, Amazon, Berkshire Hathaway and JPMorgan Chase have announced plans to create an independent healthcare company "free from profit-making incentives and constraints" that will seek to improve care and reduce costs for their US employees.
While the exact scope of the new enterprise remains to be seen, its initial focus will be developing tech-based solutions to curb inefficiencies the trio views as endemic to the healthcare industry. As Berkshire Hathaway chairman and CEO Warren Buffett put it, "The ballooning costs of healthcare act as a hungry tapeworm on the American economy."
The announcement continues a chaotic stretch for the US healthcare industry, one that's seen a new interest in consolidation between formerly separate spheres like pharmacies and providers. Although details are still scant, the news was enough to send several healthcare stocks plummeting on Tuesday, as Cigna (NYSE: CI) dropped 7%, Anthem (NYSE: ANTM) lost 5%, CVS Health (NYSE: CVS) fell by 4% and Aetna (NYSE: AET) shed 3%.
Related read: CVS, Aetna to combine in $77B merger
While the exact scope of the new enterprise remains to be seen, its initial focus will be developing tech-based solutions to curb inefficiencies the trio views as endemic to the healthcare industry. As Berkshire Hathaway chairman and CEO Warren Buffett put it, "The ballooning costs of healthcare act as a hungry tapeworm on the American economy."
The announcement continues a chaotic stretch for the US healthcare industry, one that's seen a new interest in consolidation between formerly separate spheres like pharmacies and providers. Although details are still scant, the news was enough to send several healthcare stocks plummeting on Tuesday, as Cigna (NYSE: CI) dropped 7%, Anthem (NYSE: ANTM) lost 5%, CVS Health (NYSE: CVS) fell by 4% and Aetna (NYSE: AET) shed 3%.
Related read: CVS, Aetna to combine in $77B merger
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