02 Feb Three Company Giants Join Together to Lower Healthcare Costs
A couple weeks ago we shared the news that four not-for-profit health systems are joining forces to create their own generic drug company. In more big industry news announced this week, Amazon, JPMorgan and Berkshire Hathaway have, in an effort to protect their U.S. employees (and potentially their own bottom lines) against rising insurance costs, have decided to team up to form their own healthcare company.
While this isn’t the first time large employers have attempted to come together to help control increasing healthcare costs, according to Modern Healthcare, this may be the one that actually gets the industry to take notice. All three organizations are leaders in their respective fields and a move like this will also allow them the opportunity to continue to focus on innovation and technology as they enter a different sector of business.
Cigna responded to this announcement by saying that they see this as an opportunity for them to continue to leverage their expertise to help keep insurance costs low. As reported by Modern Healthcare, Cigna CEO David Cordani said to investors, “it reinforces something we’ve been talking about for quite some time, which is it’s a pretty dynamic industry, and the older orientation around focusing only on insurance or a fee-for-service healthcare delivery model is just fundamentally not sustainable, as employers and customer demand more.”
You can read more about this announcement in Modern Healthcare.