Forbes July 6, 2018
CVS is buying Aetna. Executives are optimistic about the merger between Albertsons and Rite Aid. Amazon, JPMorgan and Berkshire Hathaway are looking to reform health care for their employees. Earlier this spring, speculation was rampant that Walmart might buy insurer Humana.
The rash of deals points to a widespread disruption in health care — and it is none too soon. Health care spending will account for almost 20% of GDP by 2025, according to the Centers for Medicare & Medicaid Services. That’s such a big number that Berkshire Chairman Warren Buffett callshigh health costs a “tapeworm” afflicting the U.S. economy.
The mergers reveal attempts to address market inefficiencies by combining business models and ecosystems to boost the quality of care...
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