Amazon, Buffett and JPMorgan to create health care companyPosted: Updated:
Three corporate giants are combining efforts to create a new health care company for their employees that could shake up the industry.
Amazon, the largest online retailer, along with Berkshire Hathaway -- the holding company led by billionaire investor Warren Buffet – and JPMorgan Chase, announced Tuesday that they are teaming up to form an independent, nonprofit health care company.
The companies have not released many specifics, but it would focus initially on their employees and their families.
K.C. Rondello, a professor of health policy at Adelphi University, says it will be interesting to see how the plan pans out.
"You're talking about companies that historically have been the king of innovation, particularly Amazon," says Rondello. "What they're able to bring to the table may be something that traditional health care companies haven't."
All three CEOs (Buffet, Amazon's Jeff Bezos and JPMorgan Chase's Jamie Dimon) admitted their new venture won't be easy.
"Success is going to require talented experts, a beginner's mind, and a long-term orientation," says Bezos.
The three companies combined have a total of about 1 million employees.