Tuesday, January 30, 2018

Amazon, Chase, and Berkshire Hathaway Partner Up to Disrupt Health Care


Amazon has joined forces with Warren Buffett’s Berkshire Hathaway and JPMorgan Chase in a bid to slash health care costs for their 1.1 million employees -- creating a possible "black swan" event that could disrupt the industry.

Together, the three partners will combine resources to create an independent company that will initially focus on “technology solutions” to provide “high-quality and transparent health care at a reasonable cost.”

“Amazon is well poised to enter, and disrupt, the health care industry as we know it," Forrester Senior Analyst Kate McCarthy said in an email. "They have the scale and digital and customer experience capacity to bring efficiencies and improvements to the industry that are long overdue."

Working out the business with their own employees first would be a a smart way to test the product out before opening it up to the general market, she said, and that could be a gamechanger.

"I'm not going to call this a black swan event yet because there are few details and would be making too many assumptions but it has potential to be," Jared Holz, analyst at Jefferies, told CNBC in email. 

Click here for the full article. 

Source: NBC News 

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