The investment is a first for JPMorgan’s healthcare division — Morgan Health — which launched in May, CNBC reported in an exclusive on Thursday (Aug. 5).
Vera Whole Health approaches healthcare with a subscription model that strives to improve both medical care and costs. Spending on U.S. healthcare services is forecasted to grow at an average annual rate of 5.4 percent through 2028 and reach $6.2 trillion.
Vera CEO Ryan Schmid said in a recent interview that today’s healthcare system is largely “transactional” with the focus on the number of procedures rather than outcomes.
“… which I think creates some perverse incentives,” Schmid said. “In our care model, our teams are paid a salary plus bonus, and that bonus is tied specifically to their outcomes.”
Vera’s monthly subscription model charges companies a flat fee per person and tasks the primary care doctor to function as the healthcare coordinator for all services a patient needs. Vera is both operating its own healthcare offices and teaming with clinics that operate differently from the standard model.
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JPMorgan is among the first big firms to sign on with Vera and offer the plan to its employees, a move that could attract more companies and cause a shift to the traditional model of healthcare benefits, CNBC reported.
Morgan Health CEO Dan Mendelson told CNBC that Vera Whole Health will be an option for employees, but not the only one. Mendelson added that Vera offers a “higher level of care” and he anticipates high demand.
Founded in 2008 and headquartered in Seattle, Vera Whole Health approaches patient care holistically and moves away from being symptom-based. The whole person model includes mental health and nutrition and is steeped in patient engagement.