Offering a new business model in healthcare, JPMorgan Chase & Co., Berkshire Hathaway, and Amazon have partnered to form a new healthcare company to provide healthcare for their US employees with the aim of improving employee satisfaction and reducing costs.

The three companies plan to pursue this objective through an independent company that they said will be “free from profit-making incentives and constraints.” The initial focus of the new company will be on technology solutions that are expected to provide US employees and their families with “simplified, high-quality, and transparent healthcare at a reasonable cost,” said the companies in a statement.

Berkshire Hathaway chairman and chief executive officer (CEO), Warren Buffett, shared his expectations of the new business in a statement. “The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” Buffet said. “Our group does not come to this problem with answers. 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,” he said.

Jeff Bezos, Amazon founder and CEO, stressed how difficult it may be to achieve the companies’ goals for the business. “The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty,” Bezos said in a statement. “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.”

Chairman and CEO of JPMorgan Chase, Jamie Dimon, also commented. “Our people want transparency, knowledge and control when it comes to managing their healthcare,” Dimon said in a statement. “The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our US employees, their families and, potentially, all Americans,” he added.

The effort is in its early planning stages, with the initial formation of the company jointly led by Todd Combs, an investment officer of Berkshire Hathaway; Marvelle Sullivan Berchtold, a managing director of JPMorgan Chase; and Beth Galetti, a senior vice president at Amazon. The longer-term management team, headquarters location, and key operational details will be communicated in due course, according to the companies.

Source: JPMorgan Healthcare, Berkshire Hathaway, and Amazon