JPMorgan Unit Supports Centivo’s $75 Million Equity and Debt Raise, According to Reuters

By Manya Saini

Healthcare company Centivo announced on Tuesday that it has raised $75 million through a combination of equity and debt financing. This funding round was supported by Cone Health Ventures and Morgan Health, a division of JPMorgan Chase, the largest bank in the United States.

The company did not reveal the valuation associated with this latest investment.

Centivo provides a primary care-focused health plan designed to serve as an alternative to traditional U.S. insurance providers, which are part of one of the most expensive healthcare systems globally. Even with insurance, many individuals, particularly those in low-to-middle income brackets, find medical services difficult to access due to high deductibles and out-of-pocket expenses.

"Our biggest competitors are the major insurance companies," said Ashok Subramanian, CEO of Centivo. "We’ve successfully reduced employee out-of-pocket costs by nearly $1,200 annually."

Out-of-pocket costs are those expenses that individuals must cover for healthcare services even when they have insurance.

The company reported that it managed to reduce members’ out-of-pocket costs by 71% in 2023 compared to the plans it replaced. This transition usually leads to savings of 15% or more for employers.

Centivo plans to utilize the new funding to improve and expand its product technology and to establish new partnerships. Subramanian emphasized the company’s commitment to growing its network of strategic alliances with leading health systems to provide integrated, coordinated, and transparent care for members.

Other participants in the funding round included MemorialCare Innovation Fund, B Capital, Cox Enterprises, F-Prime Capital, and Ingleside Investors.

"JPMorgan Chase, along with other employers, are looking for ways to enhance their employee health and well-being offerings without increasing premium costs," said Peter Scher, vice-chairman of JPMorgan Chase and a board member of Centivo.

The debt portion of this financing was provided by Trinity Capital, a venture debt firm, along with JPMorgan Chase.

(Note: This story has been edited to remove the word ‘Partners’ from F-Prime Capital’s name in the ninth paragraph.)