Amazon & co. health care venture to go beyond price negotiations

Health-care spending is taking up an increasing proportion of the U.S. economy, and a goal of the venture, Buffett said, is to “at least” halt that. (Photo: Shutterstock)

Warren Buffett’s health-care venture has far bigger plans than simply squeezing middlemen for better prices, the billionaire said.

“It would be very easy I think to go in and shave off 3 or 4 percent just by negotiating power,” Buffett said Monday in an interview on CNBC. “We’re looking for something much bigger than that.”

Buffett’s Berkshire Hathaway Inc., along with Amazon.com Inc. and JPMorgan Chase & Co., said in late January that they planned to start a joint health venture to improve care for their workers. While the companies didn’t give much detail at the time, the announcement prompted broad speculation and unease among investors, sending shares lower for health-system players including insurers and pharmacy-benefit managers.