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In a decade we will be asked, when did healthcare change? Everyone will say around the time of the pandemic, but was that the catalyst or the accelerator?

FTA

"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," CEO Jamie Dimon said in the statement. "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 American health system has proven to be a difficult nut to crack: It's a complicated network of entrenched players including insurers, drugmakers, physicians and middlemen that cost the country $3.8 trillion in 2019, according to the Centers for Medicare and Medicaid Services. In its three-year run, Haven, the joint venture that folded in January, had little to show in terms of concrete results.

JPMorgan is betting it will have better success on its own, in part by focusing on local providers and partnering directly with provider groups, insurers and other organizations.

I will answer the question by saying it was when the free market started investing heavily in solving the challenge of healthcare in the US. Addressing cost, inequities, and outcomes with investment.

https://www.cnbc.com/amp/2021/05/20/jpmorgan-launches-morgan-health-after-amazon-berkshire-hathaway-venture-collapse.html

Transcript

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  Today in health it, the story is JP Morgan is back in healthcare and this one is less about the splash and more about substance it would appear. My name is Bill Russell. I'm a former CIO for a 16 hospital system and creator of this week in Health IT at channel dedicated to keeping health IT staff current.

And engaged. We have no sponsor for today. So if you're listening to this, you know, the power of podcasting. If you wanna get your message in front of a targeted healthcare audience, send an email to partner at this week in health it.com. Alright, here is today's story, and I like this one. This comes from cnbc, JP Morgan Chase launches new healthcare business after winding down Amazon, Berkshire Venture.

And with CNBC, you get these three bullet points at the top of the article. So I'll give you the three bullet points, then we'll go into some of the excerpts from the article itself. The first bullet point, JP Morgan is launching Morgan Health to improve the quality of medical care for the bank's 165,000 US employees and their families.

The business will be led by Dan Mendelson, a health consultant who served in the Clinton administration. And the new unit will also have 250 million to make venture investments in companies with promising healthcare solutions, JP Morgan said. Alright, couple of excerpts here. After the healthcare joint venture formed by Amazon, Berkshire Hathaway.

And the biggest US bank by assets was disbanded earlier this year. The companies each vowed to push forward in their attempts to lower costs and improve outcomes for their employees. Now, JP Morgan announced Thursday it's launching Morgan Health to improve the quality of medical care for the bank's, 165,000 US employees and their families.

The business is led by Dan Mendelsohn, as we talked about earlier, a healthcare consultant who served in the Clinton administration and will be based in Washington. We have the best healthcare in the world in terms of doctors, hospitals, pharmaceuticals, and medical device companies, but we certainly do not have the best outcomes.

CEO Jamie Diamond said in a statement, there are ways we can make significant improvement, and we intend to take a disciplined approach to solving some of these issues in a meaningful way. The American healthcare System. Has proven to be a difficult nut to crack. It's a complicated network of entrenched players, including insurers, drug makers, physicians, and middlemen that cost the country 3.8 trillion in 2019.

According to the Centers for Medicare and Medicaid Services, CMS in its three year Run Haven. The joint venture that folded in January had little to show in terms of concrete results. JP Morgan is betting it will have better success on its own. In part by focusing on local providers and partnering directly with provider groups, insurers, and other organizations, the bank which spends 1.3 billion annually on healthcare for its employees will seek to improve the way primary care is delivered and enhance the ability of patients to navigate their own care.

Mendelsohn said in a phone interview, it will also focus on preventative care in maternal health, cardiovascular disease, and diabetes. He said. The new business struck a more collaborative tone than its predecessor in its release. The bank included a statement from the CEO of CVS Health, one of the healthcare companies whose stock was punished when Haven first made headlines in 2018.

I. Everything we do, we expect to be doing in partnership with other organizations. Mendelssohn said, we're not looking to build tools and technologies from scratch, but rather to deploy the best in healthcare to work for us. Like its predecessor, Morgan Health isn't being run to generate a profit.

According to Peter Scher, the bank's vice chairman, who has ultimate oversight of the effort. While the bank will initially focus on employees and their dependents, it aspires to be a model for other employers to emulate. And we'll seek to improve access to healthcare in communities the bank serves. Sure said the work that we did with Haven reinforced both the opportunities and challenges, and we think it was an important step.

Sure said, if we can capture the innovation happening right now and scale it in a way that benefits our employees and their families, that will be an enormous boost for JP Morgan and ultimately could be an enormous boost for the country. All right. That's the story. That's what's going on. As you know, with all these stories, I try to do a so what?

Why does this story matter? You know, this could seem like Groundhog Day once again, but I don't think it really is. When Haven went away, people said, see, this is harder than you think. I. But two of the three have launched new ventures back into healthcare within the year. This represents a boldness we have not seen before.

Back in the day, organizations would fail and not come back to healthcare for years. Now they're failing fast and launching new initiatives much quicker. This cycle leads to innovation and change. This also represents the thinking of these leaders. In this case, Jamie Diamond and Jeff Bezos. This is too important to get wrong.

This is a huge expenditure for these employers and it represents a huge opportunity for them if they are able to bend the curve even a little bit. Both Amazon and JPM have aspirations beyond their employees, but they're both very focused on, first, the outcomes for their employees before they go out and start addressing the market need.

The biggest thing to note here is that JPM is going the partnership route. They're now trying to build it themselves. Amazon is building it themselves. This makes sense for both companies, and you can now see on full display some of the underlying reasons that Haven didn't have a chance. They're very different in their approach and for good reason.

JPM is a financial institution and really doesn't have healthcare aspirations in and of themselves. Amazon is a consumer-centric services company that digitizes the delivery of goods at scale. Goods and services at scale. Healthcare is the next good and service they wish to deliver at scale, regardless of their aspirations and approach.

I believe that people will mark the pandemic as when healthcare changed. I don't think that will be the most accurate marker. It was definitely an accelerator to the change. I believe it changed well before that. I can't give you a date or an event, but it was when the free market capitalism took aim at the rising cost of healthcare, the inequities within healthcare, the mismatch of investment versus outcomes of healthcare, and started investing capital in solving these problems in huge quantities.

We have so much money chasing the various challenges of healthcare that at times it can appear to be messy. But the reality is that with each failure, we inch closer to success. That was the case with Haven and now we have two focused powerhouses trying different models to improve the health and wellness of their staff to start, but eventually all employer programs in the country.

That's all for today. If you know of someone that might benefit from our channel, please forward them a note. They can subscribe on our website this week, health.com, or wherever you listen to podcast Apple, Google Overcast, Spotify, Stitcher. You get the picture. We are everywhere. We wanna thank our channel sponsors who are investing in our mission to develop the next generation of health leaders, VMware Hillrom, Starbridge Advisors, McAfee and Aruba Networks.

Thanks for listening. That's all for now. I.

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