Daily Management Review

Amazon, Berkshire Hathaway, JPMorgan to create a new healthcare giant


01/31/2018


Online retailer Amazon, Warren Buffett’s Holding Berkshire Hathaway and JPMorgan Bank will join together to create a new company in the healthcare sector. The parties made their public decision in a joint statement. The goal is to reduce spending on health care and improve the service for employees in the United States.



Kārlis Dambrāns via flickr
Kārlis Dambrāns via flickr
The new company will not be aimed at making a profit and is burdened by the related restrictions, the partners report. The company will focus on technology solutions that will provide "a simple, high-quality and transparent health care system at an adequate price."

The partnership announced today unites three of the most influential companies in the US, says The New York Times: Amazon is the world's largest online retailer, Berkshire Hathaway is the holding company of billionaire investor Warren Buffett, JPMorgan Chase is the largest bank in the US in terms of assets. All three companies are among the largest private employers in the US, together they employ 1.2 million people, recalls Bloomberg.

The growing cost of health care services undermines the US economy, says Warren Buffett, Chairman of the Board of Directors of Berkshire Hathaway. "It will not be easy, but reducing the burden on the economy from the health care system, while improving the conditions for employees and their families, is worth it," says Amazon founder Jeff Bezos. In recent years, the cost of health care in the US has risen sharply, which has led to an increase in the cost of health insurance for working Americans, writes the Financial Times.

The partners promised to tall more about key details about the new company later.

Despite the lack of information, US quotes of companies in the health sector collapsed before the opening of trading in the. According to Bloomberg, Express Scripts Holding and CVS Health, which act as intermediaries between payers and all other participants in the US health system, fell by 6.7% and 5.5% respectively. The papers of insurers Cigna and Anthem declined, too.

The companies announced a new business after the market for a long time discussed the company’s possible exit into the business of prescription drugs, recalls Reuters. For example, Bloomberg wrote in November 2017: "The pharmaceutical market is one of the biggest potential targets for Amazon." After the online giant has purchased Whole Foods Market supermarket chain, it can aim at selling drugs, the agency argued: pharmacy buyers often take related products, such as cosmetics and household chemicals, and there are a lot of intermediaries in pharmaceutical distribution, whose extra charge Amazon might want remove.

source: wsj.com






Science & Technology

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

Mars Had Earth-like Salt Lakes

Study: AI is not as profitable as you might think

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

World Politics

World & Politics

Has Chile Put All Its Eggs In One Basket To Turn Towards Renewable Energy?

‘We Are Woefully Underprepared’ As Glaciers Meltdown Leaving Global Water Supply At Risk

US to reconsider medical data security laws

Vale hiding information about problems at Brazilian dams could result in death of 270 people

US Lawmakers Introduce Bill About Xinjiang Uygur Camps In China

European Council agrees to extend Brexit again

Pressure From China Forces Maserati To Dissociate From Film Awards Event In Taiwan

China to replace Hong Kong's Carrie Lam