Wednesday, June 20, 2018

Amazon-Berkshire-JP Morgan healthcare venture names Gawande CEO


June 20, 2018
Dive Brief:
  • Amazon, Berkshire Hathaway and J.P. Morgan named Atul Gawande as CEO of their partnership focused on disrupting U.S. employee healthcare. Gawande will join the firm July 9.
  • The yet-to-be-named business venture will be headquartered in Boston.
  • “I have devoted my public health career to building scalable solutions for better healthcare delivery that are saving lives, reducing suffering, and eliminating wasteful spending both in the US and across the world," Gawande said in a statement. "This work will take time but must be done. The system is broken, and better is possible.”
Dive Insight:
The New Yorker staff writer and Harvard Medical School surgery professor is an unconventional choice to lead the venture between Amazon, Berkshire Hathaway and J.P. Morgan announced in January.
Few details were given at the time and little have been released on the independent, nonprofit company created to address healthcare need of their U.S. employees.
J.P. Morgan CEO Jamie Dimon in his annual letter to shareholders in April shared some insights. Dimon said the company will work on aligning incentives throughout the industry as well as promote employees education on healthcare options and choice. "We will be using top management, big data, virtual technology, better customer engagement and the improved creation of customer choice," he wrote.
Despite much hype about the trio's potential for disruption, Leerink analyst David Larsen said incumbents have years to feel the pain.
"The alliance is in the early stages and will take years to develop solutions that potentially impact existing players like PBMs, insurers, and providers," he wrote in an investor note.
Gawande is a noted healthcare thought leader, author and surgeon. He currently practices general and endocrine surgery at Brigham and Women's Hospital and is a professor at the Harvard T.H. Chan School of Public Health and Harvard Medical School.
He has also written four New York Times bestsellers, including Being Mortal, and is a founder of Ariadne Labs, a joint effort between Harvard and Brigham and Women's that focuses on medical errors and health system effectiveness. 
Geisinger CEO David Feinberg was rumored to be among the top picks to run the organization earlier this month. However, Feinberg told CNBC that he is "100% committed to Geisinger."
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