Amazon, Berkshire Hathaway, JPMorgan Chase Team Up To Create New Health Care Company
Amazon jumped into the grocery business over the summer after spending $14 billion for Whole Foods Market Inc. Now the e-commerce behemoth is trying their hand in health care and they are teaming up with two financial giants. Amazon, along with investment house Berkshire Hathaway and New York bank JPMorgan Chase, are creating a new health care company. The announcement of the unexpected partnership sent shockwaves to the health care industry and caused several stocks to fall.
The trio of extremely profitable companies are lending their “complementary expertise” to create a health care business that helps their U.S. employees find quality care “at a reasonable cost.” The company will be independent and “free from profit-making incentives and constraints.” The new venture will focus on technology that provides “simplified, high-quality and transparent” care. The heads of each of the three companies, Amazon’s Jeff Bezos, Berkshire’s Warren Buffet, and JPMorgan’s Jamie Dimon, made the announcement on Tuesday, but did not offer specifics on their new alliance.