JPMorgan Chase announced details about Morgan Health, a new business unit focused on improving the quality, efficiency, and equity of employer-sponsored healthcare.
The announcement comes after the financial services giant and Delaware’s second largest private employer joined partners Amazon and Berkshire Hathaway in shutting down the Haven healthcare venture.
“We need to try to make the U.S. healthcare system work better,” said Jamie Dimon, CEO, JPMorgan Chase. “We have the best healthcare in the world in terms of doctors, hospitals, pharmaceutical and medical device companies, but we certainly do not have the best outcomes. Many of our problems have been around for a long time and are not aging well. There are ways we can make significant improvements and we intend to take a disciplined approach to solving some of these issues in a meaningful way.”
In Delaware, ChristianaCare, the state’s largest hospital-heathcare system, has announced plans to shift to a payment model that is based on outcomes, rather than fees.
“JPMorgan Chase has been focused on improving healthcare for its employees for many years,” explained Dan Mendelson, CEO of Morgan Health. “We are going to take what we’ve learned and accelerate healthcare innovation in the employer-sponsored healthcare market, partnering with and investing in companies that share our goals, and measuring key health outcomes to show what works.”
Morgan Health will work with a range of healthcare experts and partners, including provider groups, health plans, employers, and other organizations making healthcare system improvements. JPMorgan Chase employs 165,000 people in the United States and provides health insurance coverage to 285,000 employees and dependents.
Morgan Health will focus initially on JPMorgan Chase employees and families, but also aspires to be a model for other employers and will partner with others to broaden its impact. Morgan Health will focus on three areas:
- Accelerate health system improvement through $250 million capital allocation. The organization will initially deploy up to $250 million by investing in promising healthcare solutions and overall system improvements for the benefit of JPMorgan Chase employees and broader employer sponsored healthcare system.
- Enhance JPMorgan Chase employee health benefits through strategic initiatives. Morgan Health and the JPMorgan Chase Benefits team will work collaboratively with leading healthcare organizations to improve care for its U.S.-based employees and dependents and ultimately developing models for other employers looking to improve healthcare.
- Promote healthcare equity. Health disparities not only impact different communities, but also limit gains in quality of care and health for the broader population. Morgan Health will focus on health equity within the firm’s employee base as well as within the communities it serves.
Morgan Health will be headquartered in Washington, DC. and will partner with the company’s Benefits team nationwide, as well as its health insurance carriers to identify, implement and evaluate the best leading-edge employee health solutions, a release stated.
