Author Topic: BRK/JPM/AMZN healthcare tie up  (Read 33099 times)

Jurgis

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Re: BRK/JPM/AMZN healthcare tie up
« Reply #70 on: January 04, 2021, 11:15:09 AM »
I wonder if this is going to close down without delivering much (or anything).

As predicted: https://havenhealthcare.com/

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Haven will end its independent operations at the end of February 2021.
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LC

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Re: BRK/JPM/AMZN healthcare tie up
« Reply #71 on: January 04, 2021, 11:51:04 AM »
Thanks for the update.

What does it say when Berkshire, Amazon, and JPM cannot "disrupt" a certain industry?
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Jurgis

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Re: BRK/JPM/AMZN healthcare tie up
« Reply #72 on: January 04, 2021, 11:57:07 AM »
Thanks for the update.

What does it say when Berkshire, Amazon, and JPM cannot "disrupt" a certain industry?

Not necessarily much. Joint ventures frequently don't work out. There's usually not a lot of support from parent companies. And the structure is not necessarily beneficial for getting the take up.

Edit: Also IMO Haven had a wide and not very clear mandate. One way to make JVs work is to have a narrow mandate and forcibly transfer the business to JV. E.g. if BRK/JPM/AMZN would have forcefully transferred the medical insurance/benefits of all their employees to Haven, then Haven would have had heft and a real mandate to minimize costs and to maximize benefits to work with.
« Last Edit: January 04, 2021, 12:53:07 PM by Jurgis »
"Human civilization? It might be a good idea." - Not Gandhi
"Before you can be rich, you must be poor." - Nef Anyo
"Money is an illusion" - Not Karl Marx
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LearningMachine

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Re: BRK/JPM/AMZN healthcare tie up
« Reply #73 on: January 04, 2021, 12:41:19 PM »
Looks like Mr. Buffett ended up realizing how strong the pricing power was of the drug companies, and decided to invest in them, instead of fighting with them :-)

However, it is hard to price the drug pipelines and predict which companies will be able to continue to get new income streams as old ones expire.  So, he decided to let the market price the pipelines for him.

However, since then, a risk has developed to the pricing power with Trump's executive order, which the drug companies will fight, but it will be hard for the house and senate to ignore. 

Still hard to predict the risk to pricing power here because you can follow the money and see lawmakers from both parties getting paid by pharma.  Legalized bribery!  However, those who are not getting paid might not ignore this when Trump's executive order is fought by big pharma.

alpha

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Re: BRK/JPM/AMZN healthcare tie up
« Reply #74 on: January 04, 2021, 06:10:49 PM »
According to the CNBC article it sounds like most of the recommendations from Haven were implemented individually by the 3 companies rather than cooperatively.  Strange that they weren't able to leverage the economics of scale by pooling the 3 companies purchasing power...