Changing US Healthcare

February 3, 2018

By now everyone in the healthcare industry has seen the announcement from Amazon, Berkshire Hathaway and JP Morgan Chase about aligning to improve healthcare for its employees.

We immediately saw a drop in the established insurer and healthcare provider stocks, clearly assuming that these three giants of industry would reshape the healthcare industry. It’s amusing because their press release, four paragraphs long, only addressed creating a new entity to improve healthcare for their nearly 1 million employees, not the entire US healthcare system. Further the release provided practically no details whatsoever.

Can these three companies disrupt the US healthcare system? Certainly, they have the wealth, influence and smarts to do it. That said, many others have tried and found it a lot more difficult than it appears. Everyone in the industry agrees healthcare in the US is ripe for reinvention. It is the most expensive system in the world with varying quality levels and national outcomes far below less expensive systems in other developed countries.