Connect with us

Amazon, Berkshire and JPMorgan Seek to Form Healthcare Giant

Published

on

With the Obamacare individual mandate repealed and U.S. tax reform initiated, in the aggregate, large listed U.S. corporations – in a majority of cases – are forecasting wider profit margins. Companies that have arbitraged control of key industries with excess capital are coming up with solutions to provide benefits for their workers.

The titan of e-commerce, the Oracle of Omaha, and America’s largest bank sent stocks across the healthcare industry tumbling on January 30, 2018 with the announcement that they would be joining forces to form an independent entity “free from profit-making incentives and constraints,” aimed at providing simple, high-quality medical care to their U.S. employees. Would these titans of industry want to follow a similar path such as Kaiser Permanente – whose origins started with Kaiser Industries? Chinese tech giants such as Tencent and Alibaba have already put capital toward the healthcare technology space with prodding from Beijing. Alibaba had success with software that can understand and interpret CT scans.

Unlike U.S. Congress, which can be lobbied by large pharmaceutical companies to keep prescriptions relatively high, this new private entity would be highly incentivized to keep costs as low as possible.

Questions Arise

While the sparsely-worded press release provided little in the way of concrete details regarding the initiative’s long-term goals, the leaders of each company – Amazon’s Jeff Bezos, Berkshire Hathaway’s Warren Buffet, and Jamie Dimon of JPMorgan Chase – seem prepared to do what it takes over the long haul to give the healthcare industry a much-needed shakeup.

“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,” said Buffet, adding that, “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.”

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

CalPERS Commits $5 Billion Toward US Enhanced Equity Strategy

Published

on

The California Public Employees’ Retirement System (CalPERS) moved US$ 5 billion toward an internally-managed U.S. enhanced equity strategy. This falls under the global equity bucket at CalPERS.

Continue Reading

Chinese SAFE Investment Company Sells Off Stake in Ropemaker Place

Published

on

Singapore-listed property company Ho Bee Land, acquired a prime office at 25 Ropemaker Place, EC2, located in the City of London, for £650 million. The property went up for sale in December 2017.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Norway SWF Adds to Existing Investment in Central London

Published

on

On June 15, 2018, Norges Bank Real Estate Management, the manager of Norway Government Pension Fund Global, acquired 25 percent of a long leasehold interest in 30 Warwick Street in central London, in joint venture with The Crown Estate. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.