At the end of January JP Morgan, Amazon, and Berkshire Hathaway made the big announcement that they are uniting to create a healthcare company.
Currently, the plan is in its early stages and will solely focus on the three companies' staff members and employees, before broadening horizons of the industry as a whole. In a short joint statement released after the announcement, the three companies also stated that they plan to set up the new independent venture "that is free from profit-making incentives and constraints.” The aim will be to provide “simplified, high-quality and transparent healthcare at a reasonable cost."
With Amazon being the biggest retailer, JP Morgan the biggest bank, and Berkshire Hathaway one of the most admired conglomerates, the promise to forsake profits is striking since the combined market capitalization of all three companies is around $1.6 trillion.
After the announcement was made, healthcare stocks went down. Shares of insurance companies such as Anthem, Cigna, and UnitedHealth went down by at least 5%. Pharmacy benefit management companies like Express Scripts and CVS also suffered a drop in shares.