Speaking of health-care issues: Shortly after Amazon, JP Morgan and Berkshire Hathaway (aka Warren Buffett) announced yesterday that they were forming a new company aimed at reining in health-care costs for their U.S. employees, the shares of CVS Health, which wants to get into the insurance business, and other health care companies tanked, as Mark Reilly at the BBJ reports.
But let’s look further into the future: What if the cost-cut scheme works and Amazon opens a second headquarters in Boston with 50,000 workers and then starts putting the price squeeze on MGH, Brigham’s & Women’s, Beth Israel, Tufts Medical, etc.? You get the idea. So this could be big. But first the new company’s business plan has to work – and we’re not so sure it will. Even without details, it sounds pretty far-fetched. The New York Times has more. |