JPMorgan Chase & Co (NYSE: JPM) launched Morgan Health on Thursday, an initiative focusing on improving the quality, efficiency and equity of employer-sponsored health care.
Morgan Health will be led by Dan Mendelson, who will report to Peter Scher, vice chairman of JPMorgan Chase and a member of the bank’s operating committee.
Why Morgan Health Was Launched: “We need to try to make the U.S. health care system work better,” said Jamie Dimon, Chase’s chairman and CEO.
“We have the best health care in the world in terms of doctors, hospitals, pharmaceutical and medical device companies, but we certainly do not have the best outcomes. 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 launch of Morgan Health comes soon after the shutdown of Haven, Chase’s joint venture with Amazon.com Inc (NASDAQ: AMZN) and Berkshire Hathaway Inc. (NYSE: BRK-A) that similarly aimed to address issues with employer-based health care.
According to Chase, almost 50% of the U.S. population receives employer-sponsored health insurance.
The bank sees Morgan Health as a step toward finding solutions that might work in other organizations.
“We have an opportunity here to not only provide enormous benefit to our firm, our employees and their families, but ultimately create solutions that can be brought to bear throughout the United States,” Scher told Bloomberg.
The Plan: Morgan Health plans to invest up to $250 million in companies looking to improve employer-sponsored health care, pilot new benefits for Chase employees and promote health equity.
The new business expects to work with a variety of health care experts and partners, first focusing on Chase employees and families, and then as a model for other employers. The venture will partner with others to further its influence.
JPM’s Financials: Chase has assets of $3.7 trillion and operations worldwide. The company employs 165,000 people in the U.S. and provides health insurance coverage to 285,000 employees and dependents.
JPM Price Action: Chase stock ended Thursday’s session down 0.17% at $160.83.
Kate White is a Benzinga intern.
File photo of Jamie Dimon by Dustin Blitchok.
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