JPMorgan Unit Backs Centivo’s $75M Fundraising

Centivo secures $75 million in equity and debt financing from JPMorgan's Morgan Health, signaling a pivotal moment for the healthcare firm.

Healthcare firm Centivo announced on Tuesday that it has successfully secured a substantial $75 million in a combination of equity and debt financing. This financial backing comes courtesy of Cone Health Ventures and the illustrious Morgan Health division of JPMorgan Chase, the largest bank in the United States. While the company opted not to disclose the valuation at which this latest capital infusion was achieved, the implications of such funding are profound.

JPMorgan Unit Backs Centivo's $75M Fundraising

Centivo distinguishes itself in the crowded healthcare landscape by offering a primary care-centered health plan, presenting a viable alternative to the traditional insurance carriers that dominate the U.S. market—widely recognized as one of the most exorbitantly priced healthcare systems globally. The irony, of course, is that despite possessing insurance, many individuals, particularly those within the low-to-middle income brackets, find themselves grappling with inaccessibility to medical services. This predicament is largely attributable to the burdensome high deductibles and out-of-pocket expenses that plague the system.

Out-of-pocket costs, for the uninitiated, refer to the expenses that individuals must shoulder for healthcare services, even when they are ostensibly covered by insurance. In a remarkable feat, Centivo reported a staggering 71% reduction in members' out-of-pocket costs in 2023, compared to the plans it supplanted. This paradigm shift not only alleviates financial strain on individuals but also typically results in employers saving 15% or more—a win-win scenario, if you will.

The newly acquired capital is earmarked for enhancing and scaling Centivo's product technology, as well as forging new partnerships that could further bolster its market presence. Notably, other investors in this round included the MemorialCare Innovation Fund, B Capital, Cox Enterprises, F-Prime Capital, and Ingleside Investors, all of whom recognize the potential of Centivo's innovative approach.

The debt facility for this capital raise was provided by the venture debt firm Trinity Capital, alongside JPMorgan Chase, underscoring the confidence that major financial institutions have in Centivo's vision and operational model. In a world where healthcare costs often feel like a game of roulette, Centivo is striving to tip the odds in favor of both patients and employers alike.