JPMorgan’s Health Care Reboot Ditches Disruption for Insiders

JPMorgan Chase Co. has revamped its troubled effort to become a major player in health care by taking an insider approach and staffing its new venture, Morgan Health, with career health care executives — a move that comes after the firm initially positioned itself as a disruptor with its flashy Haven joint venture alongside Amazon and Berkshire Hathaway. Morgan Health will instead focus on a familiar goal — “improving employer-sponsored healthcare,” per its website — through an emphasis on primary care and capitated reimbursement, while building on JPMorgan’s existing relationships with Cigna Corp. and CVS Health Corp.’s Aetna.

Beyond the goal of reducing JPMorgan’s health care costs, Morgan Health will eventually sell analytics, benefit design and care coordination insights and a capitated reimbursement model to other employer plan sponsors. In contrast with Haven, Morgan Health is directed solely by JPMorgan. Morgan Health also controls a $250 million venture fund, of which $50 million was spent in August to invest in primary care provider Vera Whole Health, where Morgan Health now holds a board seat. Vera’s primary care practice is funded solely by risk-based, capitated reimbursement.

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