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Friday, March 29, 2024

Amazon-Berkshire-JPM Health-Care Partnership Folds

Courtesy of ZeroHedge View original post here.

In less than three years, a health-care joint venture spawned by “the smartest men in the room” (at least in their humble opinion) – the CEOs of Amazon, Berkshire Hathaway, and JPMorgan – which was supposed to disrupt how companies pay for employee care and make health plans far more affordable for everyone, has been terminally disrupted itself as it found just how broken the US healthcare system truly is.   

CNBC has learned exclusively that Haven, which was heralded as the miracle cure for healthcare as a means to lower health care costs for employees, has informed employees Monday that it will shutter operations by the end of next month. 

“Many of the Boston-based firm’s 57 workers are expected to be placed at Amazon, Berkshire Hathaway or JPMorgan Chase as the firms each individually push forward in their efforts, and the three companies are still expected to collaborate informally on healthcare projects,” sources told CNBC. 

Brooke Thurston, a spokeswoman for Haven, confirmed to CNBC of the company’s plan to disband. 

“The Haven team made good progress exploring a wide range of healthcare solutions, as well as piloting new ways to make primary care easier to access, insurance benefits simpler to understand and easier to use, and prescription drugs more affordable,” Thurston said in an email.

“Moving forward, Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. will leverage these insights and continue to collaborate informally to design programs tailored to address the specific needs of our individual employee populations and locations,” she said.

The source also said, ”one key issue facing Haven was that while the firm came up with ideas, each of the three founding companies executed their own projects separately with their own employees, obviating the need for the joint venture to begin with.”

Despite Haven’s announcement sending shock waves across the medical industry three years ago, resulting in shares of healthcare companies tumbling – the move to shutter the joint healthcare venture could be a sign that it’s more complicated than previously thought to lower medical costs for Americans.

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