Dr. Atul Gawande to lead Buffett, Bezos, Dimon’s health-care venture

Dr. Atul Gawande writes as well as speaks about health care — a lot. yet he hasn’t actually spent nearly as much time changing the idea.

Despite that will, the surgeon as well as Harvard professor soon will lead the most anticipated health-care company, a joint venture between three corporate titans: J.P. Morgan, Amazon as well as Berkshire Hathaway.

Those firms tapped Gawande on Wednesday to head the as-yet-unnamed health company. J.P. Morgan CEO Jamie Dimon, Amazon Chief Jeff Bezos as well as Berkshire leader Warren Buffett announced the venture in January.

Skeptics have questioned whether the trio’s grand project can actually change the system or whether the idea will become just the latest failed attempt by employers to lower health-care costs. Many have tried unsuccessfully over time on their own or through various other alliances.

Some have praised Gawande among the most brilliant minds in health care. Others, however, have questioned whether he has enough management experience to lead the venture.

“the idea’s a strange pick,” said Craig Garthwaite, director of the Health Enterprise Management Program at Northwestern University’s Kellogg School of Management. “I have a lot of respect for him. He’s a great physician who can run a hospital. yet does he know how to run a (pharmacy benefits manager), deal with pharmaceutical companies as well as the business side of health care? I don’t see any evidence of that will.”

Buffett, Dimon as well as Bezos haven’t said much about what they’re seeking to do various other than broadly lowering costs. the idea’s a topic Gawande has written extensively about.

As a staff writer at The fresh Yorker, he’s penned articles about why costs are so high as well as how more — as well as more expensive — medical care doesn’t mean better outcomes.

He profiled McAllen, Texas, one of the most expensive health-care markets in a 2009 fresh Yorker piece, “The Cost Conundrum.” He determined the primary cause was “across-the-board overuse of medicine.”

“that will will be a disturbing as well as perhaps surprising diagnosis,” Gawande wrote. “Americans like to believe that will, with most things, more will be better. yet research suggests that will where medicine will be concerned the idea may actually be worse.”

These ideas alone have won him praise, though. Buffett’s longtime investing partner Charlie Munger gave him $20,000 after reading the piece, Buffett told CNBC in 2010.

Gawande founded Ariadne Labs, a partnership between Harvard as well as Brigham as well as Women’s Hospital focused on innovation in health systems, in 2012 — which has provided him with management experience. He’ll transition to chairman through executive director when he starts his fresh role on July 6.

The trio says the fresh company will be different through traditional ones because the idea will be “free through profit-producing incentives as well as constraints.”

Ash Shehata, a principal at KPMG’s health care as well as life sciences practice, said choosing Gawande signals the Buffett, Bezos as well as Dimon trio will be thinking about strategy before execution.

“I do think the idea’s an interesting position because they’re starting at a much higher level of strategy by selecting (Gawande) than somebody coming through the operational side of the industry,” he said. “So instead of starting at 25,000 feet, they’re starting at 50,000 feet.”

They’ll today need to balance the management team with people who can execute the vision, he said, whatever that will may be.

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