Amazon.com Inc ($AMZN), Berkshire Hathaway Inc ($BRKa) and JPMorgan Chase & Co ($JPM) said on Tuesday they will form a company to cut health costs for hundreds of thousands of their employees, setting up a major challenge to an inefficient U.S. healthcare system.
The move by three of the best-known U.S. business leaders – Amazon’s Jeff Bezos, Berkshire’s Warren Buffett and JPMorgan’s Jamie Dimon – would take on the world’s most expensive healthcare system, whose mounting costs have hurt corporate profit. Shares of U.S. healthcare companies fell across the board.
The new, not-for-profit venture will initially focus on technology for “simplified, high-quality and transparent healthcare” for their more than 500,000 U.S. employees, the companies said. They did not elaborate on their strategy, but said they are searching for a chief executive officer.