According to an article by Hugh Son from CNBC, JPMorgan’s healthcare unit made its first investment. The article states, “The bank has agreed to invest $50 million in Vera Whole Health, a Seattle-based start-up that is pioneering a new, subscription-type model for employee healthcare.”
It continues, “Further, through the bank’s Morgan Health unit—a new business unveiled in May after a joint venture with Amazon and Berkshire Hathaway folded—JPMorgan will begin offering Vera’s services to its employees during benefits enrollment season this fall, the companies said.”
Vera was founded in 2008 and seeks to improve outcomes for workers and reduce costs for companies by making primary care teams accountable for the health of employees. According to the article, “Companies pay a flat monthly fee per patient, and primary care doctors are tasked with coordinating all their users’ care. The so-called advanced care model requires Vera to either operate or partner with clinics that work in a fundamentally different way than the prevailing system, according to Vera CEO Ryan Schmid.”
Schmid was quoted saying that “In a traditional model, providers are paid based on the volume of procedures; it’s a highly transactional system which I think creates some perverse incentives. In our care model, our teams are paid a salary plus bonus, and that bonus is tied specifically to their outcomes.”
JPMorgan will be one of the first sizeable corporate employers to partner with Vera and the use for employees will be optional. This year only employees in select regions will have access, since according to Morgan Health CEO Dan Mendelson, the model isn’t simple to execute.
Additionally, "The partnership came about through a relationship between the private equity firm Clayton Dubilier & Rice and Morgan Health, the companies said. Clayton recently took a majority stake in Vera that valued the company at $400 million."
The article states that “Vera operates primary care centers in 10 states; it also partners with Central Ohio Primary Care, the biggest U.S. independent doctor-owned primary care group. JPMorgan runs a technology hub in Columbus with several thousand employees, making that region a likely candidate for the service.”
Mendelson also commented, “The start-up’s approach involves a more holistic view of an employee’s health than merely focusing on physical ailments; higher patient engagement and an emphasis on mental well-being is more likely to detect diseases or even prevent them in some cases.”
“We want to know that our employees are getting screened for cancer,” Mendelson said. “We want to know that our employees are having wellness visits, that if they have high cholesterol they’re actually taking their medicine. That is all about setting up a model where you have a group that is responsible.”
