On Wednesday, three companies including Amazon.com Inc., Berkshire Hathaway Inc., and JPMorgan Chase & Co named Atul Gawande to lead the healthcare venture, a prominent medical professor who has criticised his industry’s practices.
Sources stated that according to the three companies joint statement the venture will be based in Boston and operate free from profit-making incentives. Chief Executive Officer of J.P. Morgan, Berkshire Hathaway, Amazon exposed the partnership in January to tackle rising health-care costs. This move rattled shares of the healthcare supply chain including Express Scripts, CVS Health and it will be “free from profit-making incentives and constraints.”
Gawande is a professor at the Harvard TH Chan School of Public Health and Harvard Medical School, also he is a bestselling author, practices general and endocrine surgery at Brigham and Women’s Hospital. Gawande will oversee his responsibility effective July 9.
The organizations said in the press release that Gawande will transition to chairman of Ariadne Labs from executive director. He will not give up his positions at Harvard and will keep writing, including for The New Yorker.
Gawande said, “I’m thrilled to be named CEO of this healthcare initiative.” Further, he added, “I have devoted my public health career to building scalable solutions for better healthcare delivery that are saving lives, reducing suffering, and eliminating wasteful spending both in the US and across the world.”
Chief Executive Officer at Berkshire, Warren Buffett stated that all the candidates for the job felt they could deliver better healthcare and contain rising costs.