Gawande Emphasizes Firewall Between Health Care Nonprofit And Companies Funding It, But Ambiguity Remains
There are questions about whose bottom-line the new health care initiative founded by Amazon, JPMorgan Chase, and Berkshire Hathaway will benefit despite CEO Dr. Atul Gawande's reassurances.
Gawande Calls His Venture A 'Nonproft.' But Whose Bottom Line Will Benefit?
Dr. Atul Gawande has described his new health care company as a “nonprofit” that will operate independently from the three massive corporations providing its funding — a firewall he said is crucial to ensuring its mission stays focused on the needs of patients. ...A person familiar with the inner-workings of the enterprise told STAT that its corporate creators view it as a non-profit-seeking internal unit “that serves the three founding companies.” This person stressed that the new entity, even though designed to accomplish public good, is a private organization that is accountable to its funders, not to people in need of health care solutions outside it walls. (Ross, 8/6)
Meanwhile, in other industry news —
Steady Executive Pay Hikes Eclipse Cost-Containment Concerns
Health systems are grappling with competing priorities, trying to corral costs while still attracting and keeping top executive talent with competitive salary and benefit packages. Judging by the steady increase in executives' total compensation over the past several years, it seems that health system boards are not compromising executive pay in their cost-containment efforts. (Kacik, 8/4)