Healthcare has been screaming for a disruptor. Someone heard. The announcement that Amazon is joining with market-savvy Berkshire Hathaway and JPMorgan Chase to create an insurance joint venture that will initially cover the domestic employees of these three entities was thin on details. However, the goals presented, that they would use data and bargaining power to bring transparency into the system to lower costs and improve outcomes, are certainly the key to improving the healthcare experience.
Rumors have been swirling for a while that Amazon, the market status-quo killer, was setting its sights on healthcare — one of the least transparent and most inefficient markets — which accounts for almost 20% of U.S. GDP. I am intrigued by the assertion that the venture would remove profits from the system, as all three entities have a long-term profits focus. No doubt that they mean to squeeze excess profits and areas where little value is added.
Areas of improvement
There is a lot of low-hanging fruit that would achieve these objectives. Here are four examples:
1) Improve drug price
2) Focus on the
3) Incentivize
4) Expand
Also see: “
I believe a lot can be learned from the healthcare startup Oscar, that had similar objectives but
As self-insured employers, Amazon, Berkshire Hathaway and JPMorgan can avoid many of Oscar’s missteps.
Judging by the stock market’s