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Haven, the Amazon-Berkshire-JPMorgan Venture To Disrupt Healthcare, is Disbanding After 3 Years (cnbc.com) 163

Haven, the joint venture formed by three of America's most powerful companies to lower costs and improve outcomes in health care, is disbanding after three years, CNBC has learned exclusively. From a report: The company began informing employees Monday that it will shut down by the end of next month, according to people with direct knowledge of the matter. Many of the Boston-based firm's 57 workers are expected to be placed at Amazon, Berkshire Hathaway or JPMorgan Chase as the firms each individually push forward in their efforts, and the three companies are still expected to collaborate informally on healthcare projects, the people said. The announcement three years ago that the CEOs of Amazon, Berkshire Hathaway and JPMorgan Chase had teamed up to tackle one of the biggest problems facing corporate America -- high and rising costs for employee health care -- sent shock waves throughout the world of medicine. Shares of healthcare companies tumbled on fears about how the combined might of leaders in technology and finance could wring costs out of the system. Brooke Thurston, a spokeswoman for Haven, confirmed the company's plans to close.
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Haven, the Amazon-Berkshire-JPMorgan Venture To Disrupt Healthcare, is Disbanding After 3 Years

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  • Comment removed based on user account deletion
    • Not at all. The issue is the CEO departed, and all three companies were implementing ideas from Haven independently. I really find this to be a huge disappointment; we need ideas to dramatically overhaul healthcare in the US, and this was by far one of the best shots for making it happen. I don’t know what special sauce they needed to make it work, if they needed more strategic partners or to buy up one of the incumbents, but it is a shame to see the collaboration dissolve.

      • There are plenty of good ideas, just look around the world for how healthcare is managed and provided in the rest of the high-income countries in the world. The problem is the lack of willingness to make it happen.
        • There are plenty of good ideas, just look around the world for how healthcare is managed and provided in the rest of the high-income countries in the world.

          I do NOT want the US government (federal or state) to be in charge of my health care.

          I'm open to other ideas, but not that one.

          • by sjames ( 1099 )

            So anything but the proven solution? That sounds a lot like someone who doesn't want success.

            • So anything but the proven solution? That sounds a lot like someone who doesn't want success.

              The thing is, myself and many others are perfectly happy with the coverage and money we have to pay for it.

              Yes, it sucks for others, but what I have is great and reasonably priced.

              I would actually take a hit on the level of care and out of pocket costs to me and my options would be limited if we went to government insurance.

              Sure it would benefit some...but at the cost to what I am happy with now.

              Now....explain

          • Government doesn't have a profit incentive like an insurance company does. The fact that we still don't have a public option to at least keep insurance plan costs down is a travesty.
    • Hardly.... The United States for profit health care system is an abysmal failure. Highest cost per capita in the developed world, worst results. When a VC can buy drug companies, jack up prices by 1000x to make profit adding no value, that is failure. The number of hospital beds have been steadily declining over the past 30 years. Public expenditures for mental health, substance abuse programs, have been cut – meanwhile the richest 1% have increased the wealth gap by more than it was during th
  • by Arthur, KBE ( 6444066 ) on Monday January 04, 2021 @12:44PM (#60895330)
    It's called Medicare. Just give everyone universal access to this.
    • Re: (Score:2, Interesting)

      by sabbede ( 2678435 )
      You know Medicare is a program specifically for people over 65, right? Why expand that instead of the existing program for people of any age - Medicaid?

      If you don't know, the answer is because people hate Medicaid, so the people pushing for a "universal" plan try to sell it as Medicare for everyone (because Medicare test well in focus groups of people under 65), when it would in effect be Medicaid for everyone.

      Tell people that you're going to replace their health insurance with Medicaid and they'll te

      • Tell people that you're going to replace their health insurance with Medicaid and they'll tear you limb from limb.

        What people are these? At least 3 in my family would be dead if medicaid wasn't a thing. Its not ideal, but when your options are "you can get insulin from this one place" or "you can drop dead because we live in a country where we let you die because you aren't rich", its a pretty solid deal.

        People like us, we don't care wtf they call it, we're just happy our diabetic family members are still

      • by sjames ( 1099 )

        Most people hate medicaid because of all the crazy hoops you have to jump through to prove need after decades of monkey wrenching by congress critters that want it to die. That all goes away when your citizenship is the only valid criterion.

        In that way, a universal healthcare would be more like medicare where you don't have to continuously prove and defend your eligibility (since once you're 65, there's no chance you will end up being 42 later).

      • You know Medicare is a program specifically for people over 65, right? Why expand that instead of the existing program for people of any age - Medicaid?

        Because Medicare is managed by the federal government, and Medicaid is managed by the states. When you're proposing a federal program, you're going to name it after the federal program.

        As for hatred of Medicaid, that depends greatly on the state. Some states do their best to fuck over the poor, and since they manage Medicaid in their state, they fuck over Medicaid in their state.

        Same reason Republicans and neoliberals in Congress have been cutting the VA's budget despite starting two wars, and Conservativ

  • by rsilvergun ( 571051 ) on Monday January 04, 2021 @12:46PM (#60895342)
    Stuff like this doesn't work because the people in charge tend to all sit on each other's boards of directors. So "you scratch my back, I scratch yours".

    The only way to get healthcare costs under control is the way every single country on earth does it: Single Payer / Single Insurer. There's just too much money in keeping people alive and not in pain otherwise.

    Regular market forces don't function as a result. I can't shop around for a heart transplant because I don't have the expertise to really know for certain who's going to do the best job, I don't have the pharmaceutical knowledge to pick my own drugs, etc, etc. And even if I did a lot of medical procedures are so uncommon it's not like I can make a wrong choice and go somewhere's else next time. If I don't like a restaurant I can pick another one next week. If I don't like my heart transplant I'm kinda stuck with it and I'm probably not gonna get another.
    • The only way to get healthcare costs under control is the way every single country on earth does it: Single Payer / Single Insurer.

      The intractable with Single Payer Insurance . . . is that everyone wants to receive it . . . but nobody wants to be the Single Payer.

      Even the "Medicaide / Medicare for All!" crew have to be honest and admit that it will on average cost most folks more.

      So it basically comes down to a personal moral question if you are willing to pay more to help people who are not as well off as yourself.

      In the US right now, the answer is "No!"

      If that answer ever changes to "Yes!" . . . you will get "Universal Medicaide / Medicare For All."

      • Comment removed based on user account deletion
      • by jklappenbach ( 824031 ) on Monday January 04, 2021 @04:08PM (#60896354) Journal
        First, see my post on this topic titled "Healthcare = INELASTIC DEMAND"

        It's a lie that prices have to stay where they are or increase. Inelastic demand is the number one driver of health care costs in our system. And inelastic demand can only really be dealt with by pooling demand into a large aggregates where they gain bargaining power. And pools limited to the population of a single US state don't cut it. The most leverage will be created by grouping all of the US into one pool. AKA single payer.

        Aggregate demand sufficiently, and we'll see costs come down dramatically, reducing insurance premiums, and allowing coverage to be expanded dramatically for the same amount of money.

        My last MRI cost over $10k here. In Canada, the same exact procedure, using the same exact machine would cost $900.00.

        It's INELASTIC DEMAND.

        If you don't understand what that is, you were probably snoozing in high school economics, or perhaps the public education system just failed you. Either way, here's a wikipedia article explaining it. [wikipedia.org]

      • by sjames ( 1099 )

        No, it won't cost more. Don't forget that once it's implemented, you will no longer have to pay private health insurance premiums. Considering that in the U.S. we spend more than double the amount per-capita for our 21st rate health care, people can expect to pay less once we fix it properly (like the rest of the world has).

      • The only way to get healthcare costs under control is the way every single country on earth does it: Single Payer / Single Insurer.

        The intractable with Single Payer Insurance . . . is that everyone wants to receive it . . . but nobody wants to be the Single Payer.

        This is just rich people talking. The overwhelming majority of Americans would never pay more in taxes than they currently pay for the health care they could barely afford. I'd love to pay an additional 5% of my paycheck in taxes as I pay around 12.5% of my income for health insurance premiums for my family. That's not even going into the damn deductibles, that's just premiums, and that's not covering dental or anything else. And I'm right smack in the middle of the middle class, in fact I'm going to get b

    • Why is that "the only way" to keep costs in check? Have you considered every other possible option? Have you wondered why the market did do that up until the second half of the 20th century?

      Instead of going even further down the policy road that has lead us to this point, how about rolling policies back to where they were before consumer and healthcare inflation began to diverge and try something different?

      I'm going to say this as plainly as I can. Liberal proposals for universal/single payer health

      • by sjames ( 1099 )

        There is a locked door m,arked 21A. There is a key on a little table next to the door. The key is marked 21A. You would suggest we try a fire axe, kicking the door, hiring a locksmith, getting a saw, attempting teleportation, etc. Anything but using that key sitting right there. How ever will we get through that door, I wonder? We may never find a solution! Perhaps we can beat it down with our skulls?

    • You act as if healthcare is a capitalist market in the first place, when in fact it is very possibly the most regulated, government managed industry in existence.

      I don't disagree with you that our current system is a fucking mess, a system where people want it to be capitalist at the top end, but socialist for everyone. That's untenable.

      Personally, I *don't* agree with you that market forces aren't capable of working this out. I do rather suspect that our society of clueless sheep in 2021 is incapable of

    • by sjames ( 1099 )

      Not to mention, if you're in the process of dying, there's no time to get on the web and comparison shop.

  • by Faizdog ( 243703 ) on Monday January 04, 2021 @12:58PM (#60895408)

    I have spent my whole career in healthcare and the life sciences, but in a technical capacity. My background is in AI/Machine Learning/big data/etc., and I have worked in diagnostics, devices, drug development.

    It has been really interesting and cool. The field is ripe with opportunities, and fascinating intellectual challenges.

    But guess what, it is also very very complex, for a gajillion reasons. First of all, biology is hard. And people who are experts in this area are routinely surprised and wrong. Then the actual system of delivering healthcare has a lot of issues. Then you have regulatory things to consider, and laws like HIPAA.

    Despite what people think, very few people are out there to screw others over. Sure people like to make money like in any industry, and there are bad actors (FU Martin Shkreli), but they are a very small fraction of all the people who work here. There are underlying reasons and systemic trends which have led us to where we are, and no one would have designed things this way from scratch, but also does not mean that it was all put together this way to screw over people. One common phrase I have heard from people throughout my career is that we are all patients; those who work in this area also get sick, suffer from diseases and need care throughout their lives.

    It has been funny and amusing though how people not in this area do not get it. Especially those coming from a tech background who have disrupted other areas and now are going to disrupt this field.

    Things just do not translate. Take my field of ML/AI. Algorithms, models in other domains do not need the same level of rigor. Train, and test and repeat. Deploy a model to show ads. It kinda works, that is OK. Do not have to submit to the FDA. Do not have to be careful with small amounts of data (you know how rare it is to get patient level data, especially from bio-specimens like blood, tissue, etc, and then have longitudinal follow up with it).

    People may have initial POC wins, Googles recent work with breast cancer as an example. But scaling it, working with real world issues, variability, etc, things just fall apart.

    Googles Verily venture has been around for a long time, and nothing real has come out of it.

    IBM Watsons failure in healthcare is well known and documented.

    Now Haven has failed.

    I have seen it from the other end. Doctors, biologists who do not get tech think oh Google and Facebook are so big and smart, so if they work in this area, they will succeed. Big tech thinks oh we have done well in other fields, we can win this one too.

    As someone who straddles both, I shake my head so many times. I constantly have recruiters reaching out. 90% of the time, I pass on any opportunity. The people involved just do not get it. I used to have FOMO, but after years, when I follow back up on things I declined, I usually was right. Only thing I have some regrets about is Flatiron, but lets see if Roche can really make that work. And even there, it was the right decision for me, their ML/AI stuff is pretty weak, their value was just in their datasets. And I think it was overinflated value, but that is a different post.

    Anyway, the TLDR version is that Big Tech and people who are successful in other domains have a lot of hubris that we kicked butt here, we can do so there. And pretty much every time they fail in healthcare. And vice a versa, people in healthcare who do not get tech also fail when they try to do tech stuff. There is a small subgroup of capable folks who manage to succeed in the middle.

    • I have spent my whole career in healthcare and the life sciences, but in a technical capacity.

      Not a lifetime, but I've dipped in and out over the years.

      It has been funny and amusing though how people not in this area do not get it. Especially those coming from a tech background who have disrupted other areas and now are going to disrupt this field.

      Yep. It's so wildly ludicrously complex but people who only know algorithms and think they're pretty smart always grossly underestimate the complexity.

      https://xk [xkcd.com]

    • You might have blinders on. We do work for a number of healthcare providers, and it is pretty clear from the ground up what causes prices to be what they are. Replacing a MRI in a hospital might be a $5 million project— $1 million for the medical equipment, $500k for the hard construction costs, $30k for direct architecture and engineering... and the rest is all project overhead. There are so many crazy layers of overhead it is insane. The irony is that the projects are all templated already; the on

    • To be fair, Haven wasn't trying to solve any of the biological problems of health care. They were trying to solve the billing problems of health care, which is a lot closer to the member companies' bailiwick.

    • by puck01 ( 207782 )

      This guy gets it.

      I'm a physician but have worked in clinical informatics for the last 5-10 years and even work with some AI / machine learning gurus like you. The system is insanely complicated. I'm constantly learning new things after 20+ years in health care.

      I share your feelings on the matter. I'm frequently amused by how easy some people outside the field think it is. The politics of it all is grossly oversimplified. The tech pieces also grossly oversimplified. Even people within health care have

    • by pz ( 113803 )

      First of all, biology is hard.

      This.

      I also work in biology, with an engineering background. One of the big culture shocks for me was the correlation-is-not-causation mantra in biology. There's a good reason for it: Biology is messy, as I'm fond of saying.

      In engineering, we hear and say "correlation is not causation", but we know in our heart-of-hearts that 98% of the time, correlation is in fact causation because, well, it's engineering, and we understand most of it exceedingly well. If we didn't, it wouldn't be called engineering. So

  • by mspohr ( 589790 ) on Monday January 04, 2021 @01:06PM (#60895452)

    US healthcare system is totally corrupt. Prices are 3 to 10 times other developed countries. Lots of people don't have coverage. Even those who do end up paying outrageous amounts.
    (My wife just had her annual physical. Simple exam. No lab. No health problems. Bill was over $1000.)
    Doctors, hospitals, insurance companies, pharma, device makers are all complicit in the scam.
    Regarding this "partnership". I think Amazon was probably looking to lower their costs as well as make some money off the system. Berkshire and JPMorgan were probably just looking at ways to capture profits.
    Only way to fix this is for government to dictate prices and services just like all other developed countries.

    • How come "the only fix" for the result of government trying to "fix" the healthcare market is to put government completely in charge of it? You're literally saying that the people who created the problem you are having need more authority. The very same people who, when given a little power, screwed you over are supposed to do the opposite if they have total power? Does that sound at all reasonable?
  • The biggest problem Americans facing is not China but its own healthcare monopoly -- in particular the monopolies of the healthcare providers. It's a supply side problem. Trying to squeeze the insurance providers is a waste of time and effort. Why? Because healthcare works are primarily labor- and knowledge-intensive high-liability customer servicing dealing with dirty, sick and often insane people. And then the nurse unions and medical professional associations jump in to further restrict supplies through

  • I had zero confidence in this "collaboration". I say this because I have some firsthand experience, having interviewed for a position. Without going into specifics, I had some serious concerns about the management of the company, and really about a lack of vision for the "how" this was going to be successful. Build a digital platform and... magic? I've seen that pattern in quite a few startups from my career, and none of those survived either. It doesn't matter how much money you have, if you're not th

    • I had hopes, but when I see in the article that they had fifty something employees I could tell that something must have been wrong since the start. You have given me insight into why.
  • What this tells me is that literally no amount of money or resources can solve the problem unless you're an established player. That usually means something or somebody has put up a wall to keep others out of their little playground. Fuck them.

    I don't like the notion of single payer, but I'm really liking a rollback to 1970s rules and a ban on for-profit health insurance. Make health insurance nonprofit entities only, put proportional limits on administrative and non-direct safety compliance expenditures

    • also fix billing / networks so that the end user does not get stuck with the bill if some makes an error and make network rules easy for people + ER IS IN NETWORK AT ALL TIMES FOR ANY SERVICE.

    • That usually means something or somebody has put up a wall to keep others out of their little playground.

      Yeah, the Federal Government. In the 60's, it took steps to make sure healthcare would be affordable for the poor and elderly. Costs increased. In the 70's steps were taken to combat that. Result - costs increased. In the 80's more steps were taken to make it affordable, and to "improve quality". By that time healthcare inflation was totally detached from consumer inflation.

      Pick any change to he

  • for profit healthcare needs to be cut down the usa is the only real place where this is an big thing and covid may force people to take what they get even if it's out of network.

  • by Sebby ( 238625 ) on Monday January 04, 2021 @01:47PM (#60895682)

    ...sent shock waves throughout the world of medicine

    I was actually thinking about this over the past week, on how we've not heard about the 'disruption' of this Amazon healthcare thing since the original announcement. It also reminded me how the Whole Foods purchase also didn't seem to "disrupt" much.

  • Have they even tried 3D-printing healthcare?

  • by jklappenbach ( 824031 ) on Monday January 04, 2021 @03:53PM (#60896304) Journal
    Capitalism has many great aspects. But one of its main weaknesses is that it doesn't function very well with markets where goods and services have inelastic demand.

    How much would you pay to not lose your eyesight? To walk again? To not die?

    Sorry, but Capitalism, which relies on elasticity of demand to control pricing, just won't work. We end up with all the power on the provider side. And from an ethical perspective, we really would like to avoid the situation where the decision as to whether someone lives or dies is left to profit motive. Make no mistake, with a finite set of resources, some people will always be left to die where they might otherwise live due to expense. We will always have "death panels" with any system. But how that decision is made shouldn't come down to greed.

    Thankfully, we have another tool on our economic workbench: Socialism.

    As far as a means of leveling the playing field in the face of inelastic demand, it excels by aggregating demand into, ideally, a single entity to leverage pricing back down to reasonable levels. As Socialism is the economic arm of Egalitarianism, we will also have a much more equitable means of allocating resources, and deciding who gets what.

    One of the main weaknesses of Socialism is that it lacks the institutions of competition and the profit motive. This will negatively impact our ability to develop new procedures, drugs, etc, if left to a purely Socialist system. A hybrid solution would seem to be the best approach, with the addition bonuses and subsidies to free market ventures to help ensure that the pace of innovation continues uninterrupted. Think a Chinese form of State Capitalism confined to only the market of non-elective health care.

    It's really no surprise that the venture in the OP failed, given the conditions that I've listed, as well as the byzantine labyrinth of federal and state rules and regulations, largely crafted by the health care industry to protect their own bottom line. It's not something that's well understood by the general populace. Inelastic demand is never included in discussions on healthcare on MSM or elsewhere. People are usually misguided or misinformed on the real issues facing our system, assuming that other, less systemic problems are to blame. It's not malpractice suits, nor other forms of liability. While these are expenses that do increase the cost of doing business for practitioners, they're not the reason we're seeing such stratospheric pricing. It's inelastic demand and the inappropriate application of Capitalism to a market where it can not function. And until that's universally understood, we'll remain in our current quagmire.

/earth: file system full.

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