Morgan Health invests $50 million in Vera Whole Health
This is the first investment by the new business unit of JPMorgan Chase.
Photo: Katleho Seisa/Getty Images
Morgan Health, the new business launched by JPMorgan Chase in May, is investing $50 million in Vera Whole Health, a primary care company that focuses on employer-sponsored coordinated care.
This is Morgan Health's first investment in a coordinated care model.
The business is led by Dan Mendelson, CEO of Morgan Health, reporting to Peter Scher, vice chairman of JPMorgan Chase & Co. and a member of the firm's Operating Committee. Morgan Health is headquartered in Washington, D.C.
Vera is working to move away from traditional fee-for-service reimbursement toward a globally capitated model to align financial incentives and to reimburse primary care physicians for services that improve outcomes, according to Morgan Health.
Vera currently operates a network of advanced primary care centers supported by an integrated technology platform in Arizona, Washington, California, Oregon, Idaho, Alaska, Texas, Missouri, Kansas and Nevada. It recently established a partnership with Central Ohio Primary Care, among the largest independent physician-owned primary care groups in the United States.
Vera's model is centered on whole person healthcare led by a team of primary care physicians, nurses and health coaches supported by clinics and an integrated technology platform. The coordinated care is also expected to address health equity issues.
Employers under contract with Vera have seen an average patient Net Promoter Score of 90, and improved health outcomes and utilization, Morgan Health said.
WHY THIS MATTERS
The goal of improving the quality, cost and equity of employee healthcare was the aim of the former Haven, a company founded by JPMorgan Chase, Amazon and Berkshire Hathaway.
Haven disbanded in January, but each of the company's founders said they would leverage insights learned from Haven in individual initiatives to improve healthcare quality while lowering the cost for company employees.
Morgan Health's investment in Vera appears to be among those initiatives.
THE LARGER TREND
Medicare and Medicaid have successfully implemented globally capitated models, but these models have not yet been made widely available to patients covered by employer-sponsored health plans, Morgan Health said.
Morgan Health said it will look at a number of models to improve employee health and scale those models both for JP Morgan Chase and other employers and employees throughout the country.
Livongo founder Glen Tullman is also looking to overhaul the employer self-insured business as CEO of Transcarent, a company that creates a digital platform "overlay" to existing plans.
ON THE RECORD
"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 is often very disconnected," said Morgan Health's Mendelson, who will join the Vera board of directors upon the close of the transaction.
"We are in complete alignment with Morgan Health in addressing health disparities," said Ryan Schmid, Vera CEO and cofounder. "Years ago we built an advanced primary care model that addresses people's whole health – physical, social and mental. This unique partnership will not only give us the opportunity to transform the way healthcare is delivered and paid for, but also address the role that social determinants of health, including racial bias, plays in our system."
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com