New Amazon-led health care company names surgeon Atul Gawande as CEO

Leslie Hanson
June 20, 2018

The new organization is meant to come up with ways to address the health care costs for the companies' employees, though its founders have indicated they hope that it comes up with solutions that could be spread across the entire USA health system.

"We said at the outset that the degree of difficulty is high and success is going to require an expert's knowledge, a beginner's mind, and a long-term orientation", Amazon CEO Jeff Bezos said in a statement. "(Gawande) embodies all three, and we're starting strong as we move forward in this challenging and worthwhile endeavor".

The new health care company being formed by Amazon's Jeff Bezos, billionaire investor Warren Buffett and JPMorgan's Jamie Dimon will be based in Boston.

It is unclear at this point how exactly the three prominent business executives plan to lower health care costs, though once they have a model in place, Buffett has said he would potentially like to use it on a wider scale across the country.

"The choice suggests that the (Amazon, Berkshire, JPMorgan) coalition is looking not at the drug value chain in isolation, but more broadly at the overall healthcare system across payers and providers of care delivery", Leerink Partners LLC analyst Ana Gupte said in a note.

Neither companies nor many of their employees are happy with how the system now works.

"All felt that better care can be delivered and that rising costs can be checked". Many patients, especially the sickest, struggle with that.

Gawande, a surgeon at Brigham and Women's Hospital in Boston who teaches at Harvard's medical and public health schools, will take charge of the new organization July 9. "The system is broken, and better is possible".

Buffett had previously told Yahoo Finance that Ted Combs, one of Berkshire's two investment managers, had been spending most of his time searching for the CEO to run this new company.

He noted that employers already offer ways to help patients shop for care or see a doctor remotely through telemedicine.

That could change if they go through a well-known platform like Amazon, which could then reach into its vast trove of customer data to personalize the shopping, Marcotte said.

Other reports by Iphone Fresh

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