November 18, 2018

Amazon, Berkshire, and JPMorgan Are Working Together To Fight Healthcare Costs

Ask The Doctor > News > Amazon, Berkshire, and JPMorgan Are Working Together To Fight Healthcare Costs

When it comes to the US healthcare system, it is of no surprise to hear that it is inefficient, as well as expensive. With the US spending more money on healthcare than any other country, there needs to be a way to keep costs low while improving healthcare. Recently, Amazon’s Jeff Bezos, Berkshire’s Warren Buffett and JPMorgan’s Jamie Dimon have teamed up in order to help lower this costs for their over 500,000 employees.

This venture is not-for-profit, and while they did not mention their strategy yet, they do claim they will be using technology to get “simplified, high-quality and transparent healthcare.” According to many experts in the healthcare industry, they will be working directly with drugmakers, hospitals, and doctors to help get costs calculated.

The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” Says CEO of Berkshire, Warren Buffett “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.”

Other healthcare players have also tried to work with other companies to lower costs without impacting their profits. For instance, recently, CVS worked out a 69 billion dollar deal for the acquisition of the medical insurer Aetna. This was argued to be highly beneficial for the chains thousands of employees.

Despite being vague on the details, the companies did mention that it will be run by one representative from each company: Berkshire investment officer Todd Combs, J.P. Morgan’s Marvelle Sullivan Berchtold and Beth Galetti, a senior vice president at Amazon.

This has many people cheering, including Pembroke Consulting president Adam Fein, he said in a state that:

“For better or worse, there are warped incentives baked into every aspect of the U.S. health-care system, from medical innovation to care delivery to insurance and benefit management. Rather than merely bashing the current system, I hope this new organization can help patients and their physicians make more informed and more cost-effective decisions. Technology will be necessary but not sufficient to make positive changes.”

This will be helpful as time moves on, and more information is known about the venture. The use of technology, especially on Amazon’s end, to help share information, and use AI in order to find ways of lowering costs. Although the details are not yet clear, and the companies are aware of how difficult and potentially costly that this could be, they remain optimistic in this approach.

“Our people want transparency, knowledge and control when it comes to managing their healthcare,” said J.P. Morgan CEO Jamie Dimon. “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.”

Article exclusively provided for by Lucy T.

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Dr. Jimmy Obaji M.D.

Dr. Jimmy Obaji completed his residency in Family Medicine at the University of Manitoba. He currently operates a walk-in-clinic in downtown Toronto.

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