Published: Mon, February 05, 2018
Finance | By Gustavo Carr

Amazon and JP Morgan Announce Health Care Startup for Employees

Amazon and JP Morgan Announce Health Care Startup for Employees

"To have three of the most respected CEOs in the world step up and say that their companies are going to work together to focus on the real issues, of how do you make the USA health-care system sustainable and a better delivery of service than what we have's very positive". It immediately sent shock waves through the health sector of the stock market and reinvigorated talk about health care technology, value and quality.

Due largely to Amazon's highly successful past forays into other industries - like cloud computing and private label products, for example - healthcare stocks plunged on the news. As large as the new Amazon initiative, it's not large enough to accomplish that.

At CSU, all students are required to have health insurance.

It's not surprising, then, that corporations that are at least partially responsible for providing employees with health insurance are finally pushing back against an industry that has had little incentive to contain costs. Students can either find their own insurance or purchase CSU health insurance, which costs around $1500 a semester. No matter what, it's a large extra cost on a group of students who are already buried in costs.

It's important for students to pay attention to what's happening to shake up American healthcare, because it could very directly affect us soon. That firm will be free from incentives and restrictions typically associated with making profit.

Because of this, it's not possible to measure whether the partnership will be good for public health yet.

Clearly, there's a potentially powerful force for change in the self-insured employer who, in aggregate, covers over 100 million people and is exempted from much state regulation by federal law. While other costs - costs of living, transit, food - by and large remained the same, healthcare prices continued to rise. He imagines a "next-generation 23andMe" diagnostic tool (referencing the DNA testing company) that would deliver a comprehensive "data capture of your health and well-being, nutrition, neurobionics" directly to consumers.

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Which means that, when I started, we had "flexible benefits" with a pool of money that was intended to be usable for healthcare, dental, vision, and so on. A small, non-invasive, laproscopic surgery cost $15,000.

Amazon and its allies are thus right to think that the exorbitant cost of health care can be reined in by eliminating the profit motive and consolidating buying power, but in both cases a single-payer Medicare for All system is a far better proposal than their own. The secondary reason is to assure more responsive healthcare delivery to their employees. Citing a McKinsey & Co. estimate, he says there is about $900 billion in waste, fraud, abuse, misuse and avoidable medical costs which could be resolved with approaches other sectors take - using cloud-based platforms, smart automation and actionable analytics. And at the root of it all is our for-profit health system.

American healthcare is growing increasingly more expensive, and it is becoming a problem the nation must address.

As we reported in one of our most popular stories of the week, HL7 Australia is getting ready for Argonaut Australia, the antipodean arm of the US Argonaut Project that will seek to guide the implementation of the FHIR standard for local vendors and health services. Healthcare is in a state of chaos and is wholly mired in the swamp.

"A person might exhibit a certain style in one environment in order to succeed, even if that style doesn't come naturally", according to a recent paper from leadership-consultancy Spencer Stuart.

But it's not really a fair system.

"I think across the board they have the opportunity to set high standards for the health system in whatever platform they use". These systems have huge advantages - everyone gets access, the costs are less likely to be so destructive - but they may come with certain sacrifices the affluent in the community may not be willing to make.

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