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Dan Mendelson is CEO of Morgan Health, the healthcare arm of JPMorganChase. Its mission is to improve employer-sponsored healthcare by investing in innovative young companies that improve primary care, Mendleson said.

Half the people in this country get health insurance through their employers, and it’s becoming increasingly unaffordable, he said.

“Employers need more options,” Mendelson said. “What employers see and what we see is that care is fragmented. Costs are going up dramatically to the extent that technology is being employed in clinical settings (but) the benefit is not accruing to employers with respect to cost.”

Digital engagement and AI are part of the solution but so are more out-of-the-box innovations such as locating a primary care clinic in the workplace and offering employees HRAs – Health Reimbursement Arrangements – for their medical expenses.

The bottom line, Mendelson said, is that Morgan Health looks for companies that will improve quality, reduce cost, address health equity and give a financial return for the bank.

For more, please listen to Mendelson’s conversation with Susan Morse, executive editor of Healthcare Finance News.

Talking Points:

• Digital is a big focus for employer-sponsored healthcare.
• Employees want the convenience of digital engagement and wellness options.
• Primary care has been shown to improve outcomes and reduce costs. 
• Healthcare benefits are crucial for employee recruitment and retention.
• Small employers especially struggle with the cost of care.
• When primary care is not easily accessible, the workplace can serve as a primary care clinic.
• Every company in which Morgan Health has invested is using AI in one form of another.
• Morgan Health aims to enable employees to cost effectively get care that is high quality.

More About this Episode:

Employers look to dodge cost-shifting in midst of rising expenses

Employers using various strategies to contain healthcare costs

Fewer clinicians entering primary care, data shows

California insurers launch primary care model

Healthcare costs on pace to rise 8% over the next year

Finance execs are focused on cutting costs through technology

Email the writer: SMorse@himss.org