Focusing on What's Important - Switch Healthcare

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.

He has stated that there is a “Holy Grail” that every American CEO should seek.¹

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,
Carl

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

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Switch Conversations informs business leaders on the “whys”
behind healthcare ineffectiveness and how we can help.

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