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Blog Exposure - Amazon, Berkshire Hathaway, and JPMorgan Join Forces to Form a New Healthcare Company for US Employees

LONDON, UK / ACCESSWIRE / February 01, 2018 / Active-Investors.com has just released a free research report on Amazon.com, Inc. (NASDAQ: AMZN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AMZN as the Company's latest news hit the wire. Amazon (NASDAQ: AMZN), Berkshire Hathaway (NYSE: BRK.A, BRK.B), and JPMorgan Chase & Co. plan to join forces and form an independent company which will offer healthcare for their US employees. In the announcement which was made on January 30, 2018, the three companies shared that the rationale behind the decision to form a partnership with an aim to improve employee satisfaction and reduce healthcare costs. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Amazon.com most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Rationale and Vision of the New Healthcare Company

The trio of Amazon, Berkshire Hathaway, and JPMorgan plan to form an independent healthcare company in partnership. The main aim is to provide cost effective healthcare to their US employees to improve employee satisfaction levels at the same time reduce costs. The three companies aim to provide their full backing and support in terms of scale and expertise to the new healthcare Company for the long-term so that it is free from profit-making incentives and constraints.

Initially the new healthcare Company will focus on the technology solutions so that the US employees and their families can be provided transparent and streamlined high-quality care.

The three companies are aware of the current challenges faced by the healthcare sector and the drastic changes needed to revamp the US healthcare system. The new Company is still in the initial stages of formation and the three companies are exploring ideas that will keep costs in check at the same time offer better services to its customers. The three companies have indicated that the services which are aimed only for their US employees could later be expanded to include other customers.

The entire task of forming the new company has been given to handpicked individuals from each company including: Todd Combs, Investment Officer at Berkshire Hathaway; Marvelle Sullivan Berchtold, Managing Director at JPMorgan Chase; and Beth Galetti, Senior Vice President at Amazon. The other details of the new company will be disclosed once the management team, headquarters location and key operational details have been finalized.

Management Comments

Commenting on the formation of a new healthcare Company in partnership with Amazon and JPMorgan Chase, Warren Buffett, Chairman and CEO of Berkshire Hathaway, said:

"The ballooning costs of healthcare act as a hungry tapeworm on the American economy. 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."

Jeff Bezos, Founder and CEO of Amazon, added:

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

Jamie Dimon, Chairman and CEO of JPMorgan Chase, stated:

"Our people want transparency, knowledge and control when it comes to managing their healthcare. 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."

Impact of the announcement

The entry of the three giants in the healthcare sector has already created ripples as healthcare stocks took a beating on the exchanges on January 30, 2018, following the announcement. Industry experts have been expecting Amazon's entry into the healthcare sector for quite some time but in retail pharmacy sector. The three companies together have more than one million employees and given that each Company is a pioneer and a powerful player in the sectors of technology, retail and finance, the news is making everyone sit up and take notice. However, since the new Company in the initial stages of formation, they have a long way to go to address the existing challenges in the healthcare sector for offering cost-effective healthcare.

Stock Performance Snapshot

January 31, 2018 - At Wednesday's closing bell, Amazon.com's stock was marginally up 0.91%, ending the trading session at $1450.89.

Volume traded for the day: 6.38 million shares, which was above the 3-month average volume of 3.68 million shares.

Stock performance in the last month – up 24.06%; previous three-month period – up 30.61%; past twelve-month period – up 76.19%; and year-to-date - up 24.06%

After yesterday's close, Amazon.com's market cap was at $687.13 billion.

Price to Earnings (P/E) ratio was at 366.20.

The stock is part of the Services sector, categorized under the Catalog & Mail Order Houses industry.

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