JPMorgan Chase’s (NYSE:JPM) new health-care unit has made its first investment.
A report from CNBC revealed that the bank has agreed to invest $50 million in Vera Whole Health, a Seattle-based start-up that is pioneering a new, subscription-type model for employee healthcare.
Further, through the bank’s Morgan Health unit — a new business unveiled in May after a joint venture with Amazon and Berkshire Hathaway folded — JPMorgan will begin offering Vera’s services to its employees during benefits enrollment season this fall, the companies said.
Vera, founded in 2008, aims to improve outcomes for workers and reduce costs for companies by making primary care teams accountable for the health of employees. Companies pay a flat monthly fee per patient, and primary care doctors are tasked with coordinating all their users’ care. The so-called advanced care model requires Vera to either operate or partner with clinics that work in a fundamentally different way than the prevailing system, according to Vera CEO Ryan Schmid.
"In a traditional model, providers are paid based on the volume of procedures; it’s a highly transactional system which I think creates some perverse incentives," Schmid said in a recent interview. "In our care model, our teams are paid a salary plus bonus, and that bonus is tied specifically to their outcomes."
JPM shares heightened $1.43, or 1%, to $152.67
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