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Amazon, Berkshire Hathaway and JPMorgan Name C.E.O. for Health Initiative
It’s a marquee name for a marquee venture.
Amazon, Berkshire Hathaway and JPMorgan Chase, the powerful triumvirate that earlier announced its hope to overhaul the health care of its employees and set an example for the nation, said on Wednesday that it had picked one of the country’s most famous doctors to lead the new operation.
Dr. Atul Gawande, a Harvard surgeon and staff writer for The New Yorker magazine, will become chief executive of the new company, which will be based in Boston, on July 9. He said he was not stepping down from his current medical and other duties to take the job.
The choice of Dr. Gawande, a highly respected doctor and writer on health care, was met with surprise because he has little hands-on experience running a large health care organization, unlike some of the boldface names that have been floated as possible candidates.
“He’s such a well-known health care luminary and keen observer, but this is a big leap,” said Dr. Lisa Bielamowicz, a co-founder of Gist Healthcare, a consultancy in Washington. “He hasn’t led a huge team or company.”
By moving into health care, the three corporations had signaled a widespread frustration, shared by many American businesses, with the country’s convoluted, high-cost medical infrastructure. In forming the new venture, the alliance said it would “operate as an independent entity that is free from profit-making incentives and constraints.”
As desperate as employers are to see significant change, the alliance’s three chief executives — Amazon’s Jeff Bezos, Berkshire Hathaway’s Warren Buffett, and JPMorgan Chase’s Jamie Dimon — have offered little detail as to what they want, and their efforts so far have been received with skepticism. Corporations have long tried to reduce the cost and complexity of medical care, but making changes requires taking on powerful interests like big hospitals and insurance companies that want to preserve the status quo.
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