JPMorgan Chase has acquired InstaMed, a technology company with a focus in healthcare payments, for a purchase price of more than $500 million.
The acquisition price was first reported by CNBC, and it is the largest acquisition the financial services company has made since the financial crisis. The move also highlights that JPMorgan is interested in expanding its payment services business, specifically for healthcare consumers, providers and payers. According to the company, transaction friction and inefficiency in the healthcare space is a major problem that can be alleviated with a modernized platform like InstaMed.
“We’ve made significant investments in our Wholesale Payments business over the years and this acquisition will give us a unique advantage in one of the fastest growing sectors. With InstaMed, we combine the strength and scale of JPMorgan Chase’s payments capabilities with a leading healthcare payments solution for consumers, providers and payers,” Takis Georgakopoulos, global head of wholesale payments at JPMorgan Chase, said in a statement.
InstaMed is a healthcare payments platform connected to the cloud that securely drives electronic transactions. The company was founded by former executives at Accenture and processed $94 billion in transactions last year, CNBC reported. The InstaMed business will be separate from JPMorgan Chase’s joint venture with Amazon and Berkshire Hathaway, Haven, according to CNBC.
“We couldn’t be more excited to join the JPMorgan Chase family–combining one of the world’s preeminent financial institutions with the premier technology and talent in healthcare payments,” Bill Marvin, co-founder and CEO of InstaMed, said in a statement. “Together we will be able to invest in and expand the InstaMed Network, accelerate our consumer reach and deepen our commitment to innovation.”
U.S. health spending, which currently sits at $3 trillion, is projected to reach $6 trillion by 2027.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."