Rising health-care costs ‘huge threat’ to economy: Cleveland Clinic

The brand new Amazon, Berkshire Hathaway in addition to J.P. Morgan Chase partnership is actually a great opportunity to bring down costs from the health-care industry, Cleveland Clinic Executive Advisor Toby Cosgrove told CNBC on Tuesday.

The three companies announced Tuesday they will launch an independent operation aimed at reducing health-care costs in addition to improving services for their U.S. employees.

In an interview with “Power Lunch,” Cosgrove said the collaboration is actually a signal to the private sector about the problems in health care in addition to the need to do something.

“The rising cost of U.S. health care is actually a huge threat to the U.S. economy,” he said.

In fact, 20 percent of hospitals from the country are running from the red, he pointed out.

“We’re working very hard to take costs out, in addition to we’ve taken an enormous amount of costs out, although we need a more efficient system supporting us,” said Cosgrove, who was CEO of the Cleveland Clinic coming from 2004 through 2017.

He believes the private sector should do things to reduce the costs because the system can’t totally depend on the government to do so.

“They have to put wellness things in place. They have to begin to understand how people go to the correct providers. They have to begin to drive the efficiency of purchasing.”

Earlier Tuesday on CNBC, Allergan Chief Executive Brent Saunders mentioned Cosgrove as a not bad potential CEO candidate for the brand new partnership.

Cosgrove said he hasn’t had any discussions with any of the parties involved.

When asked if he’d be interested in such a role, he responded, “I’m always interested in talking to people about things I think help the U.S. economy in addition to U.S. health care.”

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