Perhaps more than anyone else in the history of business, Warren Buffett has the reputation of being able to focus on what’s important despite all the crosswinds.
Buffett believes this “Holy Grail” is to find the solution to our healthcare value crisis.
He stresses that it is healthcare – not corporate taxes – that has been and will be the biggest drag on America’s competitive position in the world. We agree.
The statistics Buffett presented in March 2017 (before the corporate tax cut) are compelling:
- In 1960 corporate taxes were about 4% of GDP. Now they are 2%.
- In 1960 healthcare costs were 5% of GDP. Now they are 17%.
The concern that healthcare costs are out of control is not new. Lee Iacocca said as much in the mid 1980’s as head of Chrysler.2 But as the negative healthcare cost trends have continued, the situation is now more critical.
The other part of healthcare’s value problem is the poor status of our health. Perhaps the best overall metric to assess this is adjusted life expectancy. Over the last four decades America has fallen from 16th to 31st.
Last month Amazon, Berkshire Hathaway, and JP Morgan combined their corporate prowess to tackle the healthcare value problem. Jeff Bezos, legendary CEO of Amazon, commented on their venture, “Success is going to require talented experts, a beginner’s mind, and a long-term orientation.”3
He continued, “Initially focused on technology, the partnership will seek to streamline the provision of healthcare at lower costs.”
How long will it take before any improvements from this venture show up on your company’s bottom line?
Most likely the answer is “too long” or “probably never”.
A customized focus on delivering better health decisions in real time is our modus operandi at Switch.
Let us know when your company might be interested in improving both the health of your employees and your bottom line by drinking from our “Holy Grail” of better value at Switch.
Breakthrough To Better,
1Forget Taxes, Warren Buffet Says. The Real Problem is Health Care.
2Chrysler, Hit Hard By Costs, Studies Health Care System
3Prep for disruption: What Amazon’s Berkshire, JPMorgan deal means for health care
Switch Conversations informs business leaders on the “whys”
behind healthcare ineffectiveness and how we can help.
Edition 1 – Solving a Well-Entrenched Problem
Edition 2 – A Case of Dr. Jekyll and Mr. Hyde
Edition 3 – Best marketing tagline of all time?
Edition 4 – Post-Truth Killed a President
Edition 5 – What’s an employer to do?
Edition 6 – Profiting From the Opioid Epidemic
Edition 7 – The Keys to Unlocking Better Decisions
Edition 8 – When Difficult Things Need to be Done Well
Edition 9 – Fixing Healthcare
Edition 10 – Beware of a Singing Cow
Edition 11 – Wise Reflections
Edition 12 – Warning: Reader Discretion Advised
Edition 13 – Can AI save healthcare? (Part 1)
Edition 14 – Can AI save healthcare? (Part 2)
Edition 15 – Can AI save healthcare? (Part 3)
Edition 16 – Embracing Reality to Improve Healthcare
Edition 17 – Everything I Needed To Know…
Edition 18 – The Eighth Circle of Hell
Edition 19 – So… What’s Our Solution?
Edition 20 – Protecting Integrity as a Core Strategy
Edition 21 – An Unadorned Legacy
Edition 22 – Time to Grow Up
Edition 23 – Against All Odds
Edition 24 – When Everyone Has Stopped Listening
Edition 25 – Focusing on What’s Important
Edition 26 – Don’t Give Up Your Shot
Edition 27 – Join the Goodhood
Edition 28 – Fixing Healthcare (Recycled)
Edition 29 – Taming the Healthcare Beast
Edition 30 – Leadership
Edition 31 – Better Health Requires Good Sense
Edition 32 – Little Decisions With Big Consequences
Edition 33 – Transformational Courage
Edition 34 – Transformational Courage – Part 2
Guest Post – Happy Thanksgiving! By Jeff Novick, RD
Edition 35 – Transformational Courage – Part 3