JP Morgan is betting big on the future of healthcare

JP Morgan is a fundamental financial institution, with investments and interests in all sectors around the world. When it comes to healthcare, the company made headlines just a few years ago for its innovative partnership with Amazon and Berkshire Hathaway in launching Haven, a joint venture aimed at optimizing healthcare costs. and patient care experience. Renowned surgeon and author, Dr. Atul Gawande, was commissioned to spearhead the initiative, based on his years of experience in healthcare and public health. However, a few years later Gawande quit and eventually Haven was closed.

More recently, in 2021, JP Morgan launched Morgan Health as a separate business unit. The organization’s goal is to improve “health care for 285,000 employees and dependents covered by JPMorgan’s health insurance plan, as well as the millions of people in the United States receiving employer-sponsored insurance. [The unit’s] mission is to accelerate the adoption of new approaches to care delivery that improve health outcomes as well as the quality, affordability and equity of care.

Morgan Health is aggressively investing in “promising healthcare companies” that are creating meaningful positive disruption across multiple spaces, ranging from home healthcare, virtual care delivery, to healthcare analytics. health. In its latest initiative, Morgan Health has tapped Dr. Cheryl Pegus to help support the organization. Dr. Pegus was previously Executive Vice President for Health and Wellness at Walmart, where she developed Walmart’s national health vision, strategy and offerings. According to the press release, Dr. Pegus will be responsible for helping to “inform the team’s renewed focus on population-based health initiatives, including investing in and scaling new models.” promising care delivery designed to improve health outcomes, particularly among diverse populations, [in addition to advancing Morgan Health’s] Dedicated strategic work and investments to address gaps in mental and behavioral health, diabetes, heart disease and other chronic conditions among enrollees.

Indeed, Morgan Health is trying to take its vision of healthcare to the next level.

Financial institutions are increasingly interested in the health sector. Healthcare organizations have had a tough few years, with razor-thin margins and countless complex challenges, including staffing shortages, increased costs, fluctuating demand and onerous capital expenditures.

The presence of private equity in healthcare has exploded over the past decade, now accounting for nearly $120 billion in deal flow. Financial institutions are hungry to enter the healthcare space given the significant opportunity to improve care delivery, significant disruption and promising returns on investment, as a result. In an ideal world, private equity-based health care should increase access to tools, financing, and opportunities to improve health services, while balancing a business that ultimately empowers priority to patient value and care.

Nonetheless, initiatives like Morgan Health are crucial in today’s healthcare landscape because they can help provide funding and resources to companies that are making meaningful attempts to create real value. Take for example Vera Whole Health, which is backed by Morgan Health; the company is trying to revolutionize the traditional model of primary care and care coordination. If done correctly, Morgan Health may be able to apply the lessons learned from this investment to ultimately improve access to healthcare for millions more patients. Dan Mendelson, CEO of Morgan Health, explained that “Our goal with this first investment is to build a strong model of coordinated healthcare – with exceptional primary care and new ways to help employees navigate a system of health often very disconnected. […] Vera proactively helps patients achieve ideal physical, mental and social health. And because they actively coordinate with other high-value healthcare providers, they are able to create a much better overall experience for patients.

Indeed, this is just one example of a high-value investment that could dramatically improve health care for the next generation. While there are many more such opportunities to come, only time will tell how JP Morgan will truly use its talent, resources and capital to improve care delivery.

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