- JPMorgan Chase launches Morgan Health as a means to increase the health quality of the bank’s 165,000 employees and their families, and to improve health equity and control medical costs, the bank said Thursday.
- The 20-person unit, based in Washington, DC, will have $ 250 million to invest in “promising” innovations in employer coverage and pilot programs that drive new profits, the company said.
- The launch comes four months after Haven, a joint venture backed by Amazon, Berkshire Hathaway and the bank, announced it was suspending operations after three years.
According to Dan Mendelson, the health consultant JPMorgan hired to lead Morgan, Morgan Health is one of Haven’s successors and comes as the coronavirus pandemic accelerates the industry’s focus on leveraging technology to address health equity and the fragmented health care system in the US. Health.
“Haven helped us focus on digital tools and analytics that will really be the core of many of the things we will deploy and experience,” Mendelson told the Financial Times.
JPMorgan may move forward without its Haven, Amazon and Berkshire Hathaway cohorts, but it doesn’t in any way. The new unit plans to partner with several healthcare organizations, including providers, taxpayers and other employers.
“Whatever we do, we look forward to doing it in collaboration with other organizations,” Mendelson told CNBC. “We don’t want to build tools and technologies from scratch, but deploy the best in health to work for us.”
One of the most prominent partners is the retail pharmacy CVG Health. Neither company revealed the role CVS will play in the partnership, but CVS CEO Karen Lynch said in a statement that the company “hopes to work with Morgan Health” and improve health care for entrepreneurs.
These partnerships with established health care providers are important for companies that want to curb the rising cost of care for their employees. Healthcare is an infamous sector that is difficult to disrupt from the outside, as Haven is perhaps the most recent example of how even the richest and largest companies can fail when they try to renew the chassis of country insurance without a clear vision.
Morgan Health will first focus on its own employed population, then plans to pass on its model to other employers and look for other avenues to expand its impact, according to the statement.
The bank wants to improve the way primary care is provided and increase patients ’ability to navigate their own care. Specifically, Morgan Health will focus on preventive care in maternal health, cardiovascular disease and diabetes, Mendelson said.
Mendelson has been an operating partner of the Welsh private equity firm Carson, Anderson & Stowe, which previously founded the consulting firm Avalere Health, and worked on the healthcare budget during the Clinton administration with the Office of Management and Budget. He will report to Peter Scher, vice president of JPMorgan.
Morgan Health’s results will fall below the bank’s corporate reporting line, rather than one of JPMorgan’s top four revenue-generating divisions. But making a profit is not the goal of the new company, Scher said. Rather, the most crucial benefit could be the public good.
“If we can capture the innovation that is happening right now and scale it in a way that benefits our employees and their families, this will be a huge boost for JPMorgan and ultimately could be a huge boost for the country, “Scher told CNBC.
JPMorgan Chase CEO Jamie Dimon reinforced that notion in a statement Thursday.
“We have the best healthcare in the world in terms of doctors, hospitals, pharmaceutical companies and medical devices, but we certainly don’t have the best results,” Dimon said. “There are ways to make significant improvements and we aim to take a disciplined approach to solving some of these problems in a meaningful way.”
Looking to the future, Scher also called Haven a “major step” in the evolution of JPMorgan’s health mission.
“The work we did with Haven reinforced both the opportunities and the challenges [inherent in the field], “He said.