Haven, the venture to disrupt U.S. health care formed by Amazon, Berkshire Hathaway, and JPMorgan Chase, is disbanding less than three years after its launch. When it was formed, the three companies had a lofty goal: to “provide U.S. employees and their families with simplified, high-quality, and transparent health care at a reasonable cost.” Atul Gawande, the famous author and surgeon, was hired as CEO, and Jack Stoddard, who served as general manager for digital health at Comcast, took the COO job. What transpired next was a slow drain of talent. Stoddard left only nine months after being hired, and Gawande departed a year later.
Why Haven Healthcare Failed
Despite being backed by Amazon, Berkshire Hathaway, and JPMorgan Chase, the company is disbanding less than three years after its launch.
January 06, 2021
Juan Moyano/Stocksy
Summary.
When Amazon, Berkshire Hathaway, and JPMorgan Chase joined forces in early 2018 to form a new venture, their goal was to use their U.S employee base of 1.2 million people, tech savvy, and wealth to transform U.S. health care. They failed for three main reasons: inadequate market power, the perverse incentives of the U.S. health care system, and the pandemic. The only way forward is the federal government introducing the so-called “public option” that is based on Medicare Advantage plans.