Whole Foods HealthCare?

Whole Foods HealthCare?

Well folks, someone had to take this on.

So why not a consortium of Amazon, Berkshire Hathaway and J.P. Morgan Chase to try to figure out and tackle the intractable Health Care problem in the US.

At the gist of it, the problem on supply side of the equation involves the incentive system.

The incentives of the service providers (hospitals, physicians, labs etc), the payers (private insurance, Medicare, Medicaid) and the pharmaceutical industry are not aligned with the real overall long term well-being of the patients.

On the demand side of the equation, patients themselves are not empowered, educated or incentivized to take charge of their own health.

Large corporations are usually self insured. Meaning that the claims are paid by the corporation. However, they do hire a service provider to manage the healthcare plan. Like Anthem, United Health, Aetna etc.

So in this case, this consortium of Amazon, Berkshire and JPMorgan, will instead create its own administrator as a non profit.

Second, They will also most likely be a provider as well by building their own hospitals and hiring staff. Could be a non profit as well.

Third, the patients (the employees of the three firms to begin with) will be incentivized to really care for their own health for the long term.

Last but not least, this consortium will roll out this system to other interested corporations or even patients directly. How about $2,000/year per person for continuous monitoring of ones  health and proactively addressing issues?

Whole Foods might be leveraged to be part of this solution. Perhaps ship stuff on demand to address issues identified by this self monitoring system.

 

Now we know the real reason for why Amazon acquired Whole Foods.

 

Health Care Maintenance As a Service offering once the service matures in its internal operations in collaboration with Berkshire and J.P. Morgan and Chase.

This is Very similar to the strategy Amazon used with AWS. System was first developed for its own retail operations and then sold as a service to others. Now half the internet is hosted on Amazon including Netflix!

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