Amazon, Berkshire Hathaway and JPMorgan Chase said they plan to collaborate on a way to offer health care services to their U.S. employees.
The three companies said they plan to set up a new, independent company “that is free from profit-making incentives and constraints,” according to a statement on Tuesday. The initial focus will be on technology solutions to provide health care “at a reasonable cost.”
Shares of an array of U.S. health care stocks dropped on the news. Express Scripts Holding and CVS Health, which manage pharmacy benefits, declined in early trading, as did health insurers.
“By bringing together three of the world’s leading organizations into this new and innovative construct, the group hopes to draw on its combined capabilities and resources to take a fresh approach to these critical matters,” according to the statement.
The effort is in its early planning stages, the companies said. The effort is being spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon.
The management team, location of the headquarters and other operational details are to be announced at a later date.
“Our people want transparency, knowledge and control when it comes to managing their health care,” JPMorgan Chairman and CEO Jamie Dimon said in a news release. ““The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans.”
