Jeff Bezos, Warren Buffett and Jamie Dimon want to fix health care


"The healthcare system is complex, and we enter into this challenge open-eyed about the degree of difficulty."

Amazon, JPMorgan and Berkshire Hathaway have over a million workers worldwide combined.

"Hard as it might be, reducing health care's burden on the economy while improving outcomes for employees and their families would be worth the effort", Bezos said.

The three companies announced Tuesday they are teaming up to explore "ways to address healthcare for their USA employees, with the aim of improving employee satisfaction and reducing costs", according to a news release about the venture.

Three titans of American business announced Tuesday they are joining forces to tackle one of the most enduring problems in the country: quality affordable health care.

"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 said.

Amazon.com, Berkshire Hathaway and JPMorgan Chase & Co are forming a venture aimed at lowering healthcare costs for their USA employees, sparking a slide in the shares of a host of healthcare-related companies.

The effort is in its early planning stages, the companies said.

Studies show USA health care costs as a share of the economy have doubled since the 1980s to 18 percent of GDP, and are far higher and growing faster than other major economies.

Growing health care costs "act as a hungry tapeworm on the American economy", said Berkshire Hathaway CEO and chairman Warren Buffett in a statement.

One of the executives name to the effort - Todd Combs, an investment officer of Berkshire Hathaway, also serves on the board of JPMorgan Chase.

The announcement comes after pharmacy chain CVS in December bought health insurance company Aetna for $69 billion, a merger that perhaps makes more sense in light of this Amazon news.

"The three of our companies have extraordinary resources, and our goal is to create solutions that benefit our United States employees, their families and, potentially, all Americans". Other operational details including site for a headquarters and a long-term management team will be announced in the future, the companies said. Despite efforts to curb costs, studies suggest that USA doctors and hospitals continue to provide too much health care.

Because the new venture is barely underway, it's unclear what kinds of strategies might be used to rein in health care costs.

The announcement sent U.S. healthcare stocks tumbling on Monday, most notably for pharmaceutical companies CVS Health and Express Scripts.