Healthcare has been making headlines this past year.
The Trump administration attempted to repeal and replace ObamaCare on several occasions, and were continually met with a lack of support. And after numerous attempts to push out a new healthcare bill, the senate ultimately did not vote to pass the Trump Administration's healthcare bill.
This entire process took about five months, and left many wondering about the future of healthcare, and public benefits as a whole. While this administration continues to grapple with how to best structure the nation's healthcare system, a few business tycoons are taking matters into their own hands.
In late January of this year, Jeff Bezos, Warren Buffett and Jamie Dimon announced their plans to reform healthcare for their own employees.
Jeff Bezos, Founder and CEO of Amazon, alongside Warren Buffett, Chairman and CEO of Berkshire Hathaway, and Jamie Dimon, Chairman and CEO of JPMorgan Chase, all share a common pain point (pun intended): their companies employ hundreds of thousands of people, all of whom need healthcare. And according to TIME magazine, "The newly created company will be entirely 'free from profit-making incentives and constraints."
Translation: they don't need to turn a profit from their healthcare initiatives. They just need to build something that works better than the current system to provide their employees with better care--while simultaneously reducing their own company's coverage costs.
This is yet another incredible example of the leadership bone that lives in today's most forward-thinking founders, CEOs, and business leaders.
In the case of Bezos, Buffett, and Dimon, they've spotted a huge need in the market, and more impressively, are using their resources to create something that will help people at scale.
But what's most fascinating about this endeavor is that it comes at a time when government decision makers seem to be stuck with their hands tied, unsure of how to proceed effectively. Meanwhile, these business tycoons in the private sector are coming together to do what the public sector isn't.
It's great to see CEOs prioritizing their employees needs in such a prominent way. And it's interesting to hear the concerns these CEOs have with America's current healthcare system.
Warren Buffett, one of the most successful investors in the world, explains that, "The ballooning costs of health care act as a hungry tapeworm on the American economy... We share the belief that putting our collective resources behind the country's best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes," according to CNN Money.
Their brilliant plan tackles two major obstacles provide by U.S. healthcare today. It targets rising medical costs, and it aims to provide better treatment for patients.
So, how are they going to make this happen?
The healthcare company being created by JPMorgan Chase, Amazon and Berkshire Hathaway is looking to technology to provide solutions to making healthcare more affordable.
One of the greatest challenges our current healthcare system faces is dependency on reactive medicine--instead of preventative. One of the primary focuses of entrepreneurs playing in the digital health space is to shift this model--being able to address sickness, injury, and other care-related issues--before there is a need to visit a hospital, take medication, get surgery, etc. Automation and technology is seen as a step in the right direction.
Of course, this means also addressing other pressing issues like obesity, which is still treated in a reactive instead of proactive way--but that's another issue entirely.
Since Bezos and his company Amazon are known for being on the cusp of tech innovation, it's no real surprise that this would be the pillar of Amazon's future healthcare company. And according to Bloomberg, Amazon's preliminary steps into the industry have already been causing havoc among the group of long-established healthcare companies.
How will their healthcare company differ from healthcare companies already out there?
According the the New York Times, these three prominent companies have said that the healthcare company they are building would be, "free from profit-making incentives and constraints".
In a recent statement, Jamie Dimon addresses why this is important by explaining that people value transparency and having the information and opportunity to manage their own healthcare.
He noted that Amazon, JPMorgan Chase and Berkshire Hathaway each have an incredible amount of resources. And that together they plan to uses these resources to improve healthcare by creating solutions that benefit their employees, their families, and maybe the rest of America.
In the same statement, Jeff Bezos also said that there are intricate issues surrounding healthcare, and potential healthcare reform.
"The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty... Hard as it might be, reducing healthcare's burden on the economy while improving outcomes for employees and their families would be worth the effort. Success is going to require talented experts, a beginner's mind, and a long-term orientation," said Bezos.
While this may be an uphill battle, all three of these companies have the experience and the resources to do something incredible in the healthcare space.