Amazon, Warren Buffett and JP Morgan Chase create new healthcare firm
The famous trio will bring their “scale and complementary expertise” for the new entity “free from profit-making incentives and constraints”.
The initial focus will be on technology solutions that will provide US employees and their families with healthcare.
Berkshire Hathaway chairman and CEO, Warren Buffett, says: “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.”
It’s at the early planning stages, so there aren’t a lot of details. But three big names pushing into the insurtech arena is interesting.
The initial formation of the company will be spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, an MD of JP Morgan Chase; and Beth Galetti, an SVP at Amazon.
The longer-term management team, headquarters location and key operational details will be communicated in due course.