Amazon, Berkshire and JPMorgan announced on Jan. 30 they were joining forces to form a healthcare venture, and shares of healthcare companies plummeted. Shares of Walgreens, Anthem, CVS Health and UnitedHealth Group each tumbled more than 4 percent.
About four months later, Amazon, Berkshire and JPMorgan announced they had found a CEO to lead their healthcare venture. That news didn’t rattle healthcare stocks. For example, shares of UnitedHealth and Walgreens gained 0.7 percent and 0.1 percent, respectively, on the day the announcement was made, according to the report.
On June 20, the market shrugged at the announcement by Amazon, Berkshire and JPMorgan that Atul Gawande, MD, would serve as CEO of the healthcare venture, according to Barron’s. Walgreens shares ended the day up 5.3 percent, while shares of Humana and Aetna climbed 0.2 percent and 0.5 percent, respectively. UnitedHealth shares were down 0.1 percent, according to Barron’s.
More articles on healthcare finance:
2 Arizona hospitals abruptly close after entering bankruptcy
California hospital closes, lays off more than 100 employees
New Jersey freezes hospital charity care payments
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
