Apple to finance $2.5 billion in health care funding for California
Apple is planning to finance a $2 billion medical innovation fund for California to help it expand health care and prevent health care costs from spiraling out of control, according to a report by the Palo Alto-based financial news site Medical News Now.
The news comes just a week after Apple announced that it would also provide $1.4 billion to help the state of California, which is struggling to keep its health care system afloat after the state’s largest insurer, Kaiser Permanente, announced that the cost of caring for its more than 7,500 uninsured patients would more than double in the next year.
Apple plans to use the funds to help fund the creation of an innovation center in Cupertino, according the report.
The funding announcement came in the wake of Kaiser Pargam, the largest health insurance company in California, announcing that it plans to raise $1 billion in a stock offering to help boost the state and its hospitals.
Kaiser Pargeam’s stock price jumped almost 20% in after-hours trading on Friday.
Apple, meanwhile, announced in May that it planned to spend $4 billion over the next five years on research and development and development of new products that could help reduce costs for patients, the company said.
The company has also been working with healthcare companies to help expand its ability to access data from the cloud.
Apple also announced a partnership with healthcare company Medivac Inc. to offer AppleCare, which provides health care to people who sign up for Medicare and Medicaid.
AppleCare provides patients with the ability to shop for care at their doctors offices or receive their prescriptions at pharmacies and other providers, as well as to get reimbursed for their medical expenses, the Associated Press reported in October.