Amazon, Berkshire Hathaway, JPMorgan part ways in healthcare: What they learned in 3 years together

The healthcare-focused joint venture between Amazon, Berkshire Hathaway and JPMorgan Chase disbanded, according to CNN, but the companies will continue to collaborate informally on programs for employees.

The venture launched in 2018 to much fanfare as the solution to rising healthcare costs in America, but will cease operations at the end of February. What progress did it make over the past two years?

JPMorgan CEO Jamie Dimon told employees the venture, known as Haven, worked as an incubator of ideas and a place to test and learn. He plans to build on the insights gained by the joint venture.

CNBC reported many Haven workers would join one of the three companies, which will continue efforts in the healthcare sector independently.

"The Haven team made good progress exploring a wide range of healthcare solutions, as well as piloting new ways to make primary care easier to access, insurance benefits simpler to understand and easier to use, and prescription drugs more affordable," Haven spokesperson Brooke Thurston told CNBC.

Why did the venture fail? Harvard Business Review outlined three big reasons:

1. Their 1.2 million employees didn't have enough market power to negotiate lower prices, especially since employees lived across many states and markets.

2. Fee-for-service continues to dominate healthcare payment structures, and until there is a capitation model that ties outcomes to payment, hospitals don't have incentive to keep people out.

3. The COVID-19 pandemic shifted all energy to caring for infected patients. Health systems also face huge losses due to canceled or postponed elective surgery, and some may be unwilling to enter into new risk-based contracts as a result.

More articles on healthcare:
ASCA CEO William Prentice on 3 big industry trends
Independent physicians, ASCs sometimes left out of COVID-19 vaccine plans
20% of adults have delayed care because of COVID-19 & other survey findings

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