JPMorgan Chase’s new healthcare subsidiary has made its first investment, according to report. Seattle-based Vera Whole Health, a pioneer of a new subscription-based model for employee healthcare, will receive $50 million from the bank.
JPMorgan will also begin selling Vera’s services to its workers this autumn through its Morgan Health company, which was launched in May after a joint venture with Amazon and Berkshire Hathaway failed.
Founded in 2008, Vera wants to make primary care teams accountable for the health of employees in order to enhance worker outcomes and save expenses for employers. For each patient, companies pay a fixed price per month, and primary care doctors are responsible for overseeing all of their users’ health care needs. According to Vera CEO Ryan Schmid, the so-called advanced care model needs Vera to run or collaborate with clinics that function in a fundamentally different way than the current system.
According to Schmid, “under a typical paradigm, providers get paid depending on the number of operations they perform; it’s a very transactional system that, in my opinion, generates perverse incentives”. Teams are paid a salary plus a bonus, and the incentive is related to their outcomes in our care model.
JPMorgan will be one of the first big corporations to work with Vera, offering a real-world test for a paradigm change that might address one of the most pressing challenges confronting the United States: the thorniest epidemic. Health of Americans has declined in recent years despite spending trillions of dollars on medication.
It will be voluntary for JPMorgan workers but it offers a “better quality of care,” according to Morgan Health CEO Dan Mendelson.