Following the collapse of its joint health venture with Amazon and Berkshire Hathaway earlier this year, JPMorgan Chase said Thursday (May 20) it would launch its own healthcare company.
The new business unit, Morgan Health, aims to provide better medical care for the banking giant’s 165,000 employees and their loved ones. Based in Washington, DC., the business will be overseen by Dan Mendelson, who provided healthcare expertise to the Clinton White House. JPMorgan says the new business unit will get $250 million to invest in companies offering “promising healthcare solutions.”
“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,” JPMorgan CEO Jamie Dimon said in a news release. “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.”
The company says Morgan Health will work with a variety of healthcare experts to improve employee healthcare.
Morgan Health will focus initially on JPMorgan Chase employees and families, working to enhance employee health benefits while also trying to develop models for other employers looking to do the same.
The company says Morgan Health will also try to “promote healthcare equity in the communities it serves.”
JPMorgan, Amazon and Berkshire Hathaway launched their healthcare company Haven in 2018, saying they wanted to use tech-based solutions to offer people affordable, transparent and top-quality medical care.
But earlier this year, the companies announced they would be shuttering that venture, although it was clear at the time that all three companies were pursuing their own healthcare efforts.