In a press release posted this morning on the Berkshire Hathaway website, the multinational conglomerate holding company announced its intentions to partner with tech behemoth Amazon and financial giant JPMorgan Chase & Co. to form an independent company focused on addressing healthcare for their U.S. employees, with the aim of improving employee satisfaction and reducing costs.
“The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” said Warren Buffett, Berkshire Hathaway Chairman and CEO, in the statement.
“Our group does not come to this problem with answers," he added. ”But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”
Buffett said the new company will be free from profit-making incentives and constraints, and will focus initially on “technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.”
More from the press release:
“The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” said Jeff Bezos, Amazon founder and CEO. “Hard as it might be, reducing healthcare’s burden on the economy while improving outcomes for employees and their families would be worth the effort. Success is going to require talented experts, a beginner’s mind, and a long-term orientation.”
“Our people want transparency, knowledge and control when it comes to managing their healthcare,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co.. “The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans,” he added.
The effort announced today is in its early planning stages, with the initial formation of the company jointly spearheaded by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a Managing Director of JPMorgan Chase & Co.; and Beth Galetti, a Senior Vice President at Amazon. The longerterm management team, headquarters location, and key operational details will be communicated in due course.
Related Stories
| Jan 21, 2011
Research center built for interdisciplinary cooperation
The Jan and Dan Duncan Neurological Research Institute at Texas Children’s Hospital, in Houston, the first basic research institute for childhood neurological diseases, is a 13-story twisting tower in the center of the hospital campus.
| Jan 19, 2011
Biomedical research center in Texas to foster scientific collaboration
The new Health and Biomedical Sciences Center at the University of Houston will facilitate interaction between scientists in a 167,000-sf, six-story research facility. The center will bring together researchers from many of the school’s departments to collaborate on interdisciplinary projects. The facility also will feature an ambulatory surgery center for the College of Optometry, the first of its kind for an optometry school. Boston-based firms Shepley Bulfinch and Bailey Architects designed the project.
| Jan 19, 2011
New Fort Hood hospital will replace aging medical center
The Army Corps of Engineers selected London-based Balfour Beatty and St. Louis-based McCarthy to provide design-build services for the Fort Hood Replacement Hospital in Texas, a $503 million, 944,000-sf complex partially funded by the American Recovery and Reinvestment Act. The firm plans to use BIM for the project, which will include outpatient clinics, an ambulance garage, a central utility plant, and three parking structures. Texas firms HKS Architects and Wingler & Sharp will participate as design partners. The project seeks LEED Gold.
| Jan 10, 2011
Michael J. Alter, president of The Alter Group: ‘There’s a significant pent-up demand for projects’
Michael J. Alter, president of The Alter Group, a national corporate real estate development firm headquartered in Skokie, Ill., on the growth of urban centers, project financing, and what clients are saying about sustainability.
| Dec 17, 2010
ARRA-funded Navy hospital aims for LEED Gold
The team of Clark/McCarthy, HKS Architects, and Wingler & Sharp are collaborating on the design of a new naval hospital at Camp Pendleton in Southern California. The $451 million project is the largest so far awarded by the U.S. Navy under the American Recovery and Reinvestment Act. The 500,000-sf, 67-bed hospital, to be located on a 70-acre site, will include facilities for emergency and primary care, specialty care clinics, surgery, and intensive care. The Building Team is targeting LEED Gold.
| Dec 17, 2010
Arizona outpatient cancer center to light a ‘lantern of hope’
Construction of the Banner MD Anderson Cancer Center in Gilbert, Ariz., is under way. Located on the Banner Gateway Medical Center campus near Phoenix, the three-story, 131,000-sf outpatient facility will house radiation oncology, outpatient imaging, multi-specialty clinics, infusion therapy, and various support services. Cannon Design incorporated a signature architectural feature called the “lantern of hope” for the $90 million facility.
| Oct 18, 2010
World’s first zero-carbon city on track in Abu Dhabi
Masdar City, the world’s only zero-carbon city, is on track to be built in Abu Dhabi, with completion expected as early as 2020. Foster + Partners developed the $22 billion city’s master plan, with Adrian Smith + Gordon Gill Architecture, Aedas, and Lava Architects designing buildings for the project’s first phase, which is on track to be ready for occupancy by 2015.
| Oct 13, 2010
Prefab Trailblazer
The $137 million, 12-story, 500,000-sf Miami Valley Hospital cardiac center, Dayton, Ohio, is the first major hospital project in the U.S. to have made extensive use of prefabricated components in its design and construction.
| Oct 13, 2010
Hospital tower gets modern makeover
The Wellmont Holston Valley Medical Center in Kingsport, Tenn., expanded its D unit, a project that includes a 243,443-sf addition with a 12-room operating suite, a 36-bed intensive care unit, and an enlarged emergency department.
| Oct 13, 2010
Hospital and clinic join for better patient care
Designed by HGA Architects and Engineers, the two-story Owatonna (Minn.) Hospital, owned by Allina Hospitals and Clinics, connects to a newly expanded clinic owned by Mayo Health System to create a single facility for inpatient and outpatient care.
