Buffalo-based Centivo gets $30 million investment from JPMorgan Chase business unit | Business Local
Buffalo-based startup Centivo has landed a $30 million investment from Morgan Health, a new business unit of massive bank and financial services firm JPMorgan Chase & Co.
To date, Centivo, a firm founded in 2017 that offers innovative and affordable health plans for self-insured employers, has raised $148 million, including a $51 million investment in September.
Morgan Health’s investment will support “Centivo’s rapid growth and expansion amid increased demand from employers and employees,” Morgan Health said in a statement Tuesday. Centivo is among the initial group of investments for Morgan Health, which JPMorgan Chase launched last year with a focus on improving employer-sponsored health care.
“Morgan Health and Centivo share a joint mission of restoring health care affordability and value for American workers through a greater emphasis on accountable care,” Centivo CEO Ashok Subramanian said in a statement. “This investment will further increase our ability to do so for more and more employers and their employees while continuing to enhance the simplicity and affordability of Centivo’s health plan for members and patients.”
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Since launching, Centivo now has a market presence in 13 states and touts a diverse roster of clients, from a 51-employee company to numerous Fortune 500 firms.
Centivo says that, among mid-size and large employers, its typical client has saved 15% to 30% annually compared to traditional insurance models. Members’ medical and out-of-pocket pharmacy costs also have been reduced, while the use of primary care physicians has increased more than 30% – fitting into a larger shift in health care toward value-based care focused on prevention that rewards providers for good patient outcomes.
Subramanian, a Williamsville native, has increased his company’s presence in Buffalo in recent years.
Last summer, the company shifted its headquarters here from New York City, and it has added office space in the University at Buffalo’s Gateway Building on the Buffalo Niagara Medical Campus. It also has a hub of operations in Cheektowaga.
As of the fall, Centivo had 180 employees, 60 of whom were based in Western New York. The company has 14 job openings listed on its website, including four located in Buffalo.