- Brendan McDermid/Reuters
- Healthcare professionals surveyed by venture capital firm Venrock are skeptical about the new healthcare venture JPMorgan, Amazon, and Berkshire Hathaway have formed.
- Of the 300 people surveyed, 73% expected it to take longer than expected, with 25% saying the companies “have no idea what they’re getting into.”
- There have been relatively few details about the venture and what it looks like, but the news alone sent healthcare stocks plummeting in January after it was announced.
Healthcare experts have their doubts about the new venture JPMorgan, Amazon, and Berkshire Hathaway are forming.
The venture, announced in January, is aimed at lowering healthcare costs for the companies’ employees, though there haven’t been many details about what that looks like. At the time, news of the partnership sent healthcare stocks plummeting, especially health insurers and members of the pharmaceutical supply chain who might be impacted by the three business giants getting into their lines of work.
But those who have been in the healthcare industry for a while are skeptical of the speed at which the venture could potentially threaten existing healthcare companies. Of the 300 healthcare professionals, large employers, investors, and academics surveyed by venture capital firm Venrock, 73% thought that it’s going to take a lot longer than expected and face many challenges.
In particular, 25% of those surveyed said that the companies “have no idea what they’re getting into.”
“Oftentimes somebody bringing a new lens leads to great change, and sometimes someone bringing a new lens to things means they fall in the same hole that everybody else has fallen in previously,” Venrock partner Bryan Roberts said.
It remains to be seen how the JPMorgan-Amazon-Berkshire Hathaway healthcare venture will unfold.
JPMorgan CEO Jamie Dimon, for his part, seems to have a long-term view of the venture. He said in his annual letter that he plans to report on the venture’s progress “in the coming years.” The venture’s expected to pick a CEO in the next two months, Axios reported Tuesday.