JPMorgan-Amazon-Berkshire Hathaway Health Care Effort Is 'Brilliant,' Says Techonomy CEO

JPMorgan Chase & Co. JPM CEO Jamie Dimon is teaming up with, Inc. AMZN's Jeff Bezos and Berkshire Hathaway Inc. BRK BRK's Warren Buffett to create a new health care company tasked with addressing one of the "greatest issues facing society today."

The three CEOs will oversee a nonprofit company tasked with finding a "fresh approach " to health care.

The Experts

CNBC's David Faber, co-anchor of "Squawk on the Street." and Techonomy CEO David Kirkpatrick.

Faber: Ongoing Topic Of Conversation

The topic of health care has been addressed among Dimon, Bezos, Buffett and Todd Combs, Berkshire's investment manager and members of JPMorgan's board of directors for "some time," CNBC's Faber said during Tuesday's "Squawk on the Street" segment. The decision to make the project public and official was a recent decision which has created more questions than answers for the time being, Faber said. 

The decision to make the project public could be a way of enlisting other experts in the effort to tackle health care, he said. 

For the time being, it doesn't seem like the three executives are seeking to create a new health care company, Faber said. 

"It seems they're going to try to start a company in some way that is going to come up with better ways — and we all know there have got to be so many of them — to conduct health care and health insurance in this country."

The new company will likely work with the HMOs, rather than create a new insurer, Faber said. 

Related Link: Amazon's Pharma Aspirations: Cowen Finds No New License Applications

Kirkpatrick: 'Brilliant'

The decision to bring together Dimon, Bezos and Buffett is "brilliant," especially for Amazon — already one of the "most brilliant companies in the world," Kirkpatrick said during a guest spot on "Bloomberg Daybreak: Americas."

Amazon is moving to broaden its services portfolio ,and the scale of the health care business is one of the company's greatest opportunities to address, the Techonomy founder and CEO said. 

So far, Amazon's exposure to the health care industry is "basically nothing," but that doesn't mean the executive team led by Bezos hasn't been working on "all kinds of ideas," Kirkpatrick said. Conveniently, Amazon has more than 500,000 employees, so it has high health care-related costs internally. 

"They've joined with two other gigantic employers to test what I think is the future model of American health care, which is combining insurance and health care provision," Kirkpatrick said.

"In other words, the same company owns the insurance company and the doctors," he said. "And that basically aligns the incentives and gets rid of a huge amount of waste. So they are doing what we all have to do in this country, and I hope it works because it could be a great role model."

The new health care project isn't necessarily a result of politics, but rather stems from Amazon's desire to utilize its creativity to save money, he said.

Related Links:

Mark Cuban Thinks Amazon, Berkshire, JPMorgan Collab Could Pressure Congress To Act

Morgan Stanley: Health Care M&A Means Headwinds For Hospitals

Posted In: David FaberDavid Kirkpatrickhealth care reformJamie DimonJeff BezosSquawk on the StreetTodd CombsWarren BuffettCNBCHealth CareMediaGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.