WASHINGTON--(BUSINESS WIRE)--JPMorgan Chase today announced details about Morgan Health, a new business unit focused on improving the quality, efficiency, and equity of employer-sponsored healthcare. The new group will be 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.
“We need to try to make the U.S. healthcare system work better,” said Jamie Dimon, Chairman and 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.”
“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.”
Nearly half of the U.S. population receives employer-sponsored health insurance. 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.
“COVID has shed light on both the greatness of our healthcare system and its challenges,” said Peter Scher, Vice Chairman, JPMorgan Chase, who recently expanded his responsibilities to oversee Morgan Health. “The firm has been investing in developing solutions to address social and economic challenges over the past 10 years. We plan to take what we’ve learned there and apply it to healthcare.”
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 JP Morgan 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 in the communities we serve. 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 firm’s Benefits team nationwide, as well as its health insurance carriers to identify, implement and evaluate the best leading-edge employee health solutions.
“We are looking forward to working with Morgan Health,” said CVS Health President and CEO Karen S. Lynch. “We have a long-standing relationship with JPMorgan Chase and will continue to collaborate to make healthcare better for all employers.”
Morgan Health will use its financial capital to drive innovation. Bob Kocher, Partner at Venrock, said, “It is exciting to see JPMorgan Chase choose to invest in healthcare companies that can improve patient outcomes and make healthcare more affordable. JPMorgan Chase should be able to add a great deal of value to its investments as both a large employer and as an employer with deep expertise in analytics, data science, and building consumer and enterprise products.”
Mark McClellan, MD, PhD, the Robert J. Margolis Professor of Business, Medicine, and Policy, and founding Director of the Duke-Margolis Center for Health Policy at Duke University, added, “There is plenty of opportunity to unlock the potential of value-based care. Through public and private partnerships we can work together to accelerate the shift from volume- to value-driven care that can help improve the quality of care and lower health care costs.”
Health equity will also be an important focus for Morgan Health – for JPMorgan Chase employees and the communities it serves – and is consistent with its commitments to racial equity. Dr. Wayne A. I. Frederick, president of Howard University added, "I applaud JPMorgan Chase for their work on this critical issue facing every community in the United States.”
In addition to Morgan Health, Scher oversees the firm’s global Corporate Responsibility efforts, including public policy, and has led a number of flagship programs focused on equitable growth such as the firm’s $200 million investment in the revitalization of Detroit.
Mendelson brings a valuable blend of skills and experience to this new business. He is a former operating partner at Welsh, Carson, Anderson & Stowe, a healthcare and technology private equity firm, and Founder and CEO of Avalere Health LLC, a healthcare advisory firm. He also previously served in the White House Office of Management and Budget as Associate Director of Health during the Clinton Administration.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.7 trillion and operations worldwide. JPMorgan Chase & Co. employs 165,000 people in the U.S. and provides health insurance coverage to 285,000 employees and dependents. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.