News Briefs: JPMorgan Chase Takes $30 Million Position in Centivo
Morgan Health, JPMorgan Chase Co.’s health care venture arm, will invest $30 million in startup ERISA carrier Centivo Corp. The investment is part of Centivo’s Series B-1 financing round. Centivo’s strategy is based on value-based care arrangements with providers. A Morgan Health press release claimed that “among mid-size and large employers, Centivo’s typical client has saved 15 to 30 percent annually compared to traditional insurance models. In addition, members’ medical and pharmacy out-of-pocket cost has, on average, been reduced to less than $350 per person per year. These cost reductions have occurred all while increasing primary care utilization by more than 30 percent and strengthening quality through an advanced primary care-centered clinical model.” Centivo operates in 13 states. JPMorgan launched Morgan Health following the collapse of Haven, a health care joint venture with Amazon.com, Inc. and Berkshire Hathaway Inc.