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Morgan Health triples down on value-based care with $30M for Centivo

Illustration of two checks forming a health plus.

Illustration: Aïda Amer/Axios

JPMorgan Chase's Morgan Health invested $30 million in employer-facing health plan startup Centivo, marking the company's third such investment to-date.

Why it matters: The world's largest bank by market cap is building from the ashes of Haven, its failed cost-savings venture with Amazon and Berkshire Hathaway.

  • Led by famed surgeon and author Atul Gawande, Haven was an attempt to cut skyrocketing health care costs and boost access to quality care.
  • Similarly, Morgan Health is focused on increasing access to value-based health care for those with employer-sponsored health insurance.

Deal details: The funding comes as part of an extended Series B1 funding round.

  • The extension adds to the $51 million Series B1 Centivo raised last September and brings Centivo's total funds raised to roughly $148 million, per Pitchbook.

Context: The investment is Morgan Health’s third startup investment focused on generating savings for employer-sponsored health care.

  • In March, Morgan Health joined a $23 million funding round for Embold Health, a health care navigation company designed to help assess provider quality.
  • And last August, it invested $50 million in primary care company Vera Whole Health.

By the numbers: Launched in 2019, Centivo has a market presence in 13 states and claims to save customers 15-30% annually compared with traditional insurance models.

How it works: Based in New York, Centivo uses a primary care-based accountable care organization (ACO) model that focuses on coordinating care between multiple providers including doctors and hospitals.

  • The company says it generates savings while increasing primary care utilization and strengthening quality.
  • Its customers are mid-size and large companies with 50+ employees.

What's next for Morgan Health: The company plans to debut new primary care benefits and services with Vera Whole Health and Central Ohio Primary Care in Columbus later this fall.

  • Morgan Health has “300 companies in the pipeline" that it may back in the future, CEO Dan Mendelson told Axios in March. “Ultimately, we want to make care more accessible to our employees.”
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