A health-care venture launched with great fanfare by three of the world’s most prominent companies— Amazon.com Inc., Berkshire Hathaway Inc. and JPMorgan Chase JPM 0.54% & Co.—and their chief executives is folding about three years after its founding. The joint venture, which was announced in 2018 with expectations high enough to push down major insurers’ shares, will cease operations in February without having achieved those aims.
America’s faith in the ability of billionaires to solve its problems has taken another knock. Three years ago, the triumvirate of Jeff Bezos, Warren Buffett and Jamie Dimon unveiled a joint initiative to fix the US healthcare system. The Haven ventures will dissolve in February. Even the bosses of Amazon, Berkshire Hathaway and JPMorgan were no match for this sprawling, rent-seeking industry. But disruption alone is not a valid business model. Haven’s public plans were hazy. Hiring renowned surgeon Dr Atul Gawande as chief executive, someone better known for writing about healthcare than running a business, suggests the project prioritised talking over doing.
They hyped the new offering beyond rationality. Here’s what WSJ writes:
Haven’s limited public achievements contrast with its ambitions, which attracted attention from leaders of several of America’s most recognized companies. Berkshire’s Mr. Buffett, JPMorgan’s Mr. Dimon and Amazon’s Mr. Bezos all expressed hope that the effort would help reduce costs for their workers and improve care. In a March 2019 memo posted on Haven’s website, Dr. Gawande said the startup would be “relentless,” produce “high impact” work and “create new solutions and work to change systems, technologies, contracts, policy, and whatever else is in the way of better health care.”
I dont know what kind of processes were sought to be built. I have been covering this space for quite some time now and I think it had a lot of potential. However, the healthcare delivery is a sum of many moving parts. While they want to “fix” the delivery model, it would have required serious effort to get bickering partners on a common platform.
The least, I hope, is that they open source the systems that they sought to put into place or else, it would be a serious waste of talent.