Amazon is teaming up with Berkshire Hathaway and JPMorgan Chase to type a brand new healthcare firm (PDF) that can goal to service the US and be “free from profit-making incentives and constraints.”

Berkshire Hathaway chairman and CEO, Warren Buffett described the company-in-the-making’s mission as follows:

The ballooning prices of healthcare act as a hungry tapeworm on the American economic system. Our group doesn’t come to this downside with solutions. However we additionally don’t settle for it as inevitable. Quite, we share the assumption that placing our collective sources behind the nation’s finest expertise can, in time, verify the rise in well being prices whereas concurrently enhancing affected person satisfaction and outcomes.

That could possibly be enormous for the healthcare trade within the US, the place companies might be extraordinarily costly for sufferers, whereas hospitals are reportedly struggling to make financial institution. Quartz famous that the market worth of 10 main publicly listed medical health insurance and pharmacy shares fell by a mixed $30 billion within the first two hours of buying and selling yesterday on account of the announcement from Bezos et al.

Amazon has been rumored to be keen on coming into the healthcare house prior to now: following its $13.7 billion acquisition of grocery chain Complete Meals, it was reported to be eyeing pharmacy corporations CVS and Walgreens as its subsequent targets – however nothing appears to have panned out since.

The three corporations didn’t go into element about their plans for the brand new firm, however famous that it’ll concentrate on “know-how options that can present US staff and their households with simplified, high-quality and clear healthcare at an affordable value.” It’ll be attention-grabbing to see what comes of it within the coming months and years.

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