According to CNBC, Haven, the healthcare joint venture formed by Amazon, Berkshire, and JP Morgan, will disband by the end of February after three years of existence.
The three entities created Haven to address one of the most critical problems in the US – high and rising costs for employee health care. According to sources, each company came up and worked on their separate projects instead of together was one of the leading causes of disruption.
Although they will part their ways, Amazon, Berkshire, and JP Morgan will continue their efforts to tackle the needs of employees.
″The Haven team made good progress exploring a wide range of healthcare solutions, as well as piloting new ways to make primary care easier to access, insurance benefits simpler to understand and easier to use, and prescription drugs more affordable. Moving forward, Amazon, Berkshire Hathaway, and JPMorgan Chase & Co. will leverage these insights and continue to collaborate informally to design programs tailored to address the specific needs of our individual employee populations and location,” stated Brooke Thurston, Haven’s spokeswoman.
Following the news, shares of UnitedHealth Group, CVS Health, and Humana each gained more than 2%. At the same time, Amazon stock price fell 2.16%, and JP Morgan traded 0.94% lower.
Sources: reuters.com, cnbc.com