Amazon Health Care Partnership Looks Beyond Just Reducing Drug Costs

In an interview with CNBC, Berkshire Hathaway CEO Warren Buffett said that a joint venture with Amazon CEO Jeff Bezos and JP Morgan Chase CEO Jamie Dimon is aimed beyond just making small changes in health care costs.
“I love the idea of tackling what I regard as the major problem of our economy,” Buffett told CNBC
At the end of January 2018, the CEOs announced the launch a new health care partnership in an effort to provide high-quality care while reducing costs, according to a press release issued by the companies.
The press release stated that the initial focus of the collaboration will be to provide technology solutions that offer employees streamlined, high-quality, and transparent care without profit-related constraints. The 3 organizations hope to pool their resources to take an innovative and disruptive approach to health care, according to the release.
Related coverage: How Could the New Amazon Health Care Company Affect Specialty Pharmacy?
Buffett told CNBC that it would be easy to shave off a few percentages of health care spending; however, there is a bigger problem that must be addressed.
Compared with other industrialized countries, the United States is at a competitive disadvantage, Buffett told CNBC. He said that US health care costs are at approximately 18% of gross domestic product (GDP) with every indication of increasing, while other countries are around 11% of GDP.
Despite the hurdles this new company faces due to the complexity of the health care system, Buffet told CNBC that he is confident they have the right partners to take on the challenges with the help of a “top-notch CEO.”
On the day the partnership was announced, stocks for health care stakeholders, including insurers and pharmacy benefit managers, took a hit. Many innovative companies have tried to tackle the problems within the US health care system in the past, but not with such influential partners involved, according to the interview.
“The goal is to deliver better care in reality and also in terms of how people feel about the care they are receiving because that’s important too,” Buffet told CNBC. “And to find ways to take cost out of the system, while not impairing the quality of what people receive. And that’s enormously complicated.”
Buffett told CNBC that this partnership will not only be beneficial to the 3 companies, but will also serve as a model that other entities can emulate to stop the constant increase of health care costs.
If successful, this approach may change the future of health care.
“It would be very easy, I think, to go in and shave off 3 or 4% just by negotiating powers,” Buffett told CNBC. “We’re for something much bigger than that.” 

Stay up to date on the latest news in specialty pharmacy by getting Specialty Pharmacy Times in your mailbox or inbox for free!

Click here to sign up for free for the bi-monthly Specialty Pharmacy Times print journal delivered to your address.

Click here to sign up for our email newsletters delivered every Monday, Wednesday, and Friday, in addition to breaking news alerts.

Click here to follow us on Facebook. 

Click here to follow us on Twitter. 

Click here to join our LinkedIn group. 

Related Articles

Cohesion among key stakeholders, which will lead to an evolution in care, is clearly on the rise, and the growth of those relationships will only benefit patients in the end.
Health system specialty pharmacies (HSSPs) are uniquely positioned to provide valuable data and superior care to the patients they serve.
An unhealthy microbiome caused by chronic antibiotic treatment could result in long-term inflammation within the tissue and tumor environment.
Company Profile >
Industry Guide >
Market News >
Peer Exchange >
Conferences >
Subscribe >
Specialty Times Resources
About Us
Contact Us
Terms & Conditions
MJH Associates >
Pharmacy Times
American Journal of Managed Care
MD Magazine
Targeted Oncology
Physicians' Education Resource
Pharmacy & Healthcare Communications, LLC
2 Clarke Drive
Suite 100
Cranbury, NJ 08512
P: 609-716-7777
F: 609-716-4747

Copyright Specialty Pharmacy Times 2006-2019
Pharmacy & Healthcare Communications, LLC. All Rights Reserved.