The Conversation: Here’s how Atul Gawande and the Amazon-Berkshire-JPMorgan health-care venture could slash costs 15%-20% [MarketWatch]
Berkshire Hathaway Inc. New (BRK.B)
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Source: MarketWatch
Opinion: Here’s how Atul Gawande and the Amazon-Berkshire-JPMorgan health-care venture could slash costs 15%-20% The new health-care venture formed by Amazon, Berkshire Hathaway and JPMorgan Chase announced on June 20 that Harvard professor and well-known author Atul Gawande would be the company’s CEO . The idea for the new company is to innovate by cutting costs from the health-care system, starting with the more than 1 million employees of the three companies behind the venture. Previous efforts to contain health care spending — from managed care to high-deductible health plans to alternative payment models — shared the goal of eliminating unnecessary and overly expensive services. But these practices are very hard to change, since they’re based on physicians’ clinical judgment and patient preferences. The new joint venture may find it is easier to start with a different question entirely: Can we reduce spending by 15% to 20% just by cutting out unnecessary middlemen? As business sc
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