JPMorgan Chase CEO James Dimon hopes the company's new healthcare venture with Amazon and Berkshire Hathaway will lead to lower healthcare costs and better medical outcomes for the three companies' U.S. employees.
JPMorgan, Berkshire and Amazon announced the new healthcare venture Jan. 30. Although they provided few details, they said the new venture's main focus would be cutting healthcare costs for the three companies' employees.
In a recent interview with Business Insider, Mr. Dimon offered more insight on why the three self-insured companies chose to partner. "So I tell people, JPMorgan Chase already buys $1.5 billion of medical, and we self-insure," he told Business Insider. "Think of this, we're already the insurance company, we're already making these decisions, and we simply want to do a better job."
Mr. Dimon said the new venture was born after chatting with Berkshire Hathaway CEO Warren Buffet, Amazon CEO Jeff Bezos and Berkshire investment officer Todd Combs.
"We said, we know we can do more. We know we can do more just thinking through every single part of it," Mr. Dimon told Business Insider. "Whether that be giving employers more information on their phones, which could in turn help with their overall wellness. Keeping employees healthier for longer in turn could cut down on healthcare spending by preventing patients from getting sicker."
Although cutting healthcare costs is a main goal of the partnership, that isn't the new venture's only focus. "We want happier employees, better medical outcomes, and I do think at the end of the day that'll actually be cheaper," said. Mr. Dimon.
Read the full Business Insider article here.
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