Amazon, Berkshire, JPM form healthcare company to cut costs

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(Reuters) – Amazon.com Inc, Berkshire Hathaway and JPMorgan Chase & Co will form a healthcare company aimed at cutting costs for their U.S. employees, they said on Tuesday, sending shares in the broad healthcare sector sharply lower. The independent company will be “free from profit-making incentives and constraints,” they said. It will initially focus on technology to provide “simplified, high-quality and transparent healthcare” at a “reasonable” cost for its more than 500,000 employees in the United States, they said. Investors in the healthcare sector have been nervous about technology giant Amazon becoming a competitor and eating away at profits, just as it has done in the retail sector. Amazon has been looking at the pharmacy business and pharmacy distribution, according to numerous media reports and Wall Street analysts. With Amazon (AMZN.O) teaming up with JPMorgan (JPM.N>, a leading financial company, and Berkshire
Source: Reuters