JP Morgan is a fundamental financial institution, with investments and interests in all sectors of the world. In healthcare, the company made headlines just a few years ago for its groundbreaking partnership with Amazon and Berkshire Hathaway to launch Haven, a joint venture to optimize healthcare costs and the care experience for patients. The famous surgeon and author Dr. Atul Gawande was given the task of directing the initiative, based on his years of experience in healthcare and public health. However, just a few years later, Gawande resigned, and Haven was eventually closed down.
Most recently, in 2021, JP Morgan launched cheers morgan as an independent business unit. The organization’s goal is to improve “health care for the 285,000 employees and dependents covered by JPMorgan’s health insurance plan, as well as the millions of people in the US with employer-sponsored insurance. [The unit’s] The 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 significant positive disruption in multiple spaces, ranging from home healthcare, virtual care delivery to healthcare analytics. in his last Move on, Morgan Health hired Dr. Cheryl Pegus to help support the organization. Dr. Pegus was previously the Executive Vice President of Health and Wellness at Walmart, where she grew Walmart’s vision, strategy and healthcare offerings nationally. According to the press release, Dr. Pegus will be tasked with helping to “inform the team’s renewed focus on population-based health initiatives, including investing in and scaling up promising new care delivery models designed to improve outcomes.” health outcomes, particularly among diverse populations, [in addition to advancing Morgan Health’s] strategic work and investments dedicated to addressing the gaps in mental and behavioral health, diabetes, heart disease and other chronic conditions among members.”
In fact, Morgan Health is trying to take its vision of healthcare to the next level.
Financial institutions have become increasingly interested in the health sector. Healthcare organizations have had a tough few years, with razor-sharp margins and myriad compounding challenges, including staff shortages, rising costs, fluctuating demand, and burdensome capital expenditures.
The presence of private capital in health it has exploded in the last decade, and now accounts for almost $120 billion dollars in business flow. Financial institutions are eager to enter the healthcare space given the significant opportunity to improve care delivery, significant disruption, and the promising returns on investment, consequently. In an ideal world, private equity-based healthcare should increase access to tools, financing, and opportunities to improve healthcare services, while balancing a company that ultimately prioritizes customer value and care. patient.
Nonetheless, initiatives like Morgan Health are crucial in today’s healthcare landscape, as they can help provide financing and resources to companies trying to create value in a meaningful way. Take, for example, Vera Whole Health, which is backed by Morgan Health; the company tries to revolutionize the traditional model of primary care and care coordination. Done right, Morgan Health can apply the lessons learned from this investment to ultimately improve access to care for millions of other patients. Dan Mendelson, CEO of Morgan Health, explained, “Our goal with this first investment is to build a strong coordinated healthcare model, with outstanding primary care and new ways to help employees navigate a healthcare system that he is often very disconnected. […] Vera is proactively helping patients achieve ideal physical, mental, and social health. And because they actively coordinate with other high-value healthcare providers, they can create a much better overall patient experience.”
In fact, this is just one example of a high-value investment that can significantly improve healthcare for the next generation. While many more such opportunities remain, only time will tell how JP Morgan will actually use its talent, resources, and capital to ultimately improve care delivery.