Morgan Health, the new healthcare-focused arm of JPMorgan Chase, is making a $50 million investment in Vera Whole Health.
The funding represents Morgan Health's first investment in a coordinated care model. JPMorgan launched the new firm after the collapse of Haven, its joint venture with Amazon and Berkshire Hathaway, with the goal of improving the quality and cost of employer healthcare.
Vera, which is also backed by CD&R, offers a holistic primary care model with quality outcomes and efficient costs for payers and providers, Morgan Health said.
“Our goal with this first investment is to build a strong coordinated healthcare model—with outstanding primary care and new ways to help employees navigate a healthcare system that is often very disconnected,” said Dan Mendelson, CEO of Morgan Health, who will join the Vera Board of Directors upon the close of the transaction.
“Vera is proactively helping patients achieve ideal physical, mental and social health. And because they actively coordinate with other high-value health providers, they’re able to create a much better overall patient experience," Mendelson said.
Vera operates a network of primary care providers in Arizona, Washington, California, Oregon, Idaho, Alaska, Texas, Missouri, Kansas and Nevada, and recently inked a deal with Central Oho Primary care, which is the largest independent-owned primary care group in the country.
For the employer-sponsored market, the company is also working to move away from fee-for-service to more value-based care models, according to the announcement. Morgan Health said it is focused on investments in this area, and in ways to use value-based care to enhance health equity.
Morgan Health said it plans to continue investing in ways to scale coordinated care models for its own employees as well as other employers.
“We are in complete alignment with Morgan Health in addressing health disparities,” said Ryan Schmid, Vera CEO and co-founder.
“Years ago we built an advanced primary care model that addresses people’s whole health—physical, social and mental," Schmid said. "This unique partnership will not only give us the opportunity to transform the way healthcare is delivered and paid for, but also address the role that social determinants of health, including racial bias, plays in our system.”