Amazon, Berkshire Hathaway, and J P Morgan Chase today announced a partnership to cut health-care costs and improve services for their U.S. employees. The announcement slammed the shares of multiple companies in the health-care sector.
The giant companies, which together employ more than 1.1 million workers, will launch an independent operation that’s intended to be free from profit-making incentives.
The new company will be independent and “free from profit-making incentives and constraints.” The businesses said the new venture’s initial focus would be on technology that provides “simplified, high-quality and transparent” care.
Buffett said in a prepared statement, “The ballooning costs of (health care) 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.”
The new company’s goal at first will be to target technology solutions to simplify the health-care system.