Jeff Bezos is looking to crack healthcare, and now, Warren Buffett and Jamie Dimon are on his side.
Amazon, JP Morgan and Berkshire Hathaway are set to change healthcare.
Finally, Jeff Bezos took a leap into the health industry, however, he does it with Warren Buffet and Jamie Dimon by his side.
The announcement made late January stated that the objective is to develop technology solutions so families can count on a simplified, high-quality and transparent healthcare at a reasonable cost.
This comes after employers across the U.S. are trying almost anything to control the rising costs of healthcare, which have been consuming bigger portions of the budgets of their employees for years.
Taking on the enormous challenges of healthcare
Although the statement made on Tuesday was short on details and the alliance is barely on early planning stages, it aims to attack an industry that cost up to $3.2 trillion in 2015. This means the U.S. spends around $9,990 per person a year on health matters.
Jamie Dimon, CEO for JP Morgan, said: “Our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans (…) “Our people want transparency, knowledge and control when it comes to managing their healthcare,”
As for Warren Buffet, CEO for Berkshire Hathaway, he sated: “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.”
What does Amazon bring to the table?
Everything Amazon touches turns to gold.
From retail purchases to buying Target, the online giant has a massive market capitalization of $572 billion with barely no competition, aside from behemoth Wal-Mart, which makes the Bezos company a solid business ally for anyone.
Aside from that, Amazon is already part of people’s homes and daily routines, they show-off customer trust and a well-positioned brand that could innovate the way customer and services interact, resulting in a more user-friendly approach that can innovate healthcare.
New horizons
Amazon has transformed the way anybody buys anything, and it was just a matter of time before they jumped into the healthcare industry.
After buying Whole Foods for nearly $14 billion, the company leaded by Jeff Bezos turns to shape another industry, and why not?
Just the announcement of the alliance forming of the three renowned innovators in technology and finance sent a shock wave through the health care sector.
On Wall Street, billions in value were erased in just seconds, seeing many health companies like insurers Anthem and Cigna as their main losers.
What’s to change? Time (and money) will tell.
