Vital Healthcare Capital (V-Cap) is a new nonprofit social impact loan fund that offers financial capital to support quality care and good healthcare jobs in low-income communities. We finance clinics, mental/behavioral health centers, senior care providers, community hospitals, special needs health plans, and others that serve the most vulnerable patients.
V-Cap is uniquely focused on improving how health care is delivered to low-income, high-cost patients while also creating or enhancing health jobs in low-income communities.
Health care is rapidly changing, creating both challenges and opportunities for healthcare providers serving people living at or near poverty, and particularly those focused on people with complex needs, including mental illness, disabilities and chronic disease.
These changes also affect the economic health of low-income communities, as health care represents the most important source of career-tracked employment for many communities. As care moves from inpatient to community-based settings, there is a challenge to ensure that frontline healthcare jobs are valued for their contribution to a better performing healthcare system.
The opportunity is ripe for better coordinated and cost-effective care that treats the whole person, prioritizes the prevention of disease, and creates new, high-quality jobs for frontline caregivers.
V-Cap’s new funding comes from a diverse consortium of investors, providing a mix of grants and loan capital that we will deploy in support of better health care and good healthcare jobs in low-income communities. Our funders include Atlantic Philanthropies, the Ford Foundation, the JPMorgan Chase Foundation, MetLife, Dignity Health, and Bank of America.
The $30 million V-Cap will lend builds on an initial $10 million of support from the Robert Wood Johnson Foundation, used at V-Cap’s launch last year to support Commonwealth Care Alliance, an innovator serving the frail elderly and people with disabilities.
Our borrowers are health care providers and plans committed to providing high-quality, coordinated care to vulnerable, low-income patients. They understand the importance of frontline staff in improving health and are committed to providing a new pipeline of high-quality jobs for today’s healthcare market. V-Cap is excited to be a catalytic partner to propel that change.
V-Cap represents a big bet to address critical gaps in existing health infrastructure and help transform our healthcare system to better serve patients.Sara Kay,
It’s an innovative approach to addressing both the supply and demand sides of the job and job quality challenge in health care today.Ford Foundation
Dignity Health: “This investment is rooted in our mission to improve the quality of life for those who are poor and disfranchised. Our partnership with V-Cap allows Dignity Health to extend our reach and address the social factors that influence health and well-being in low income communities.”
Ford Foundation: “This investment represents an innovative approach to addressing both the supply and demand sides of the job and job quality challenge in health care today. Through this effort, V-Cap has the potential to increase the number of quality jobs in the healthcare sector and signal to other investors that high-road employment strategies can be profitable. On the supply side, supporting workforce development and finding ways to upskill the workforce has the potential to provide new models of career pathways for increasing numbers of low-income, low-skill workers in the healthcare sector.”
JPMorgan Chase Foundation: “As the need for access to quality healthcare grows, there must be more frontline healthcare jobs in low income communities,” said Chauncy Lennon, Head of Workforce Initiatives at JPMorgan Chase & Co. “JPMorgan Chase & Co. has committed $5 million to V-Cap so that healthcare providers can offer employees the necessary training to succeed at their jobs and advance their careers while improving the delivery of healthcare to those greatest in need. JPMorgan Chase’s financial support is a Program-Related Investment, which is an innovative way to maximize the impact of philanthropic resources invested in helping healthcare workers secure good paying jobs and opportunities for economic growth in their communities.”
MetLife: “We strongly support V-Cap’s program because it aligns with two long-standing goals of MetLife’s social investing, said Matthew Sheedy, director and head of Community Investments. “First, these programs create good, stable jobs in low-income communities, enabling people to get on the path to financial independence. These programs also set the stage for these same communities to pursue better health outcomes for their vulnerable populations. MetLife is proud to be part of V-Cap’s efforts.”
The three healthcare organizations profiled below are transforming care in ways that exemplify the initiatives that V-Cap funds will support. Each of them are leaders in developing more person-centered care for vulnerable populations; and are innovators in developing quality jobs for frontline healthcare workers at the center of their models of care. These organizations have inspired V-Cap’s development, and are potential users of V-Cap funds.
These three organizations – a health center, a behavioral health organization, and a community health plan – are expanding and transforming how they deliver care for the hardest to serve. Those initiatives require investments in systems, infrastructure, facilities, and working capital. V-Cap’s funds are a flexible source of capital for organizations at the forefront of developing care that works for communities in need.
Community Access provides mental health, housing, workforce, and education services to more than 1,500 people annually, many of whom have chronic mental illness or are in recovery from addiction, trauma and abuse. Central to the agency’s mission is the belief that “people are experts in their own lives.”
It is from this vision that Community Access has pioneered the development of a range of person-centered recovery programs, including affordable housing that integrates families and formerly homeless adults, a peer training academy to support “careers for peers,” an art collective, and a respite center for people experiencing psychiatric crisis.
Expanding peer-informed practice that effectively addresses the social determinants of health, such as employment, housing, nutrition, harm reduction, and social inclusion, exemplifies the types of impacts that Vital Healthcare Capital (V-Cap) seeks to catalyze in its investments.
We see great opportunities to expand our respite care model and workforce training for people with lived mental health experience. It’s exciting that V-Cap will be a source of the critically important upfront financial resources needed to grow these cost-effective programs.Steve Coe,
Rocky Mountain Health Plans (RMHP) has stood out as a national leader for transforming how health care is delivered and paid for. RMHP is a nonprofit health insurance plan and Medicaid care coordination entity working closely with providers to promote a more integrated model of care for its 350,000 enrollees who live across the Western Slope of Colorado; this includes 180,000 Medicaid, CHIP and dual-eligible enrollees.
V-Cap and RMHP are collaborating to identify capital needs among key providers in the health plans network, and opportunities for V-Cap financing to support the transformation to better integrated and person-centered care throughout RMHP’s network. The V-Cap/RMHP collaboration is focused on investments in integrated behavioral health and primary care, and on expansion of needed services for medically complex populations, including at-risk kids, frail seniors, and people with significant mental health needs.
V-Cap has immersed themselves in our work with provider organizations, and we expect this collaboration to result in important investments in better health for people in the Western Slope of Colorado.Patrick Gordon,
St. John’s Well Child and Family Center is a community health center serving South Los Angeles, a region of high poverty and substantial unmet health needs. St. John’s has been an innovator in providing the right care for the hardest to serve, in making improved community health part of its model of care, and in developing quality healthcare jobs. Its focus goes beyond the doctor’s visit, and includes preventing disease and intervening around health risks in the community.
St. John’s understands that the poverty in its community is a cause of poor health, and so views providing good jobs for its workforce as an essential part of its mission. In 2015, St. John’s became the first community health center in the nation to raise the minimum wage of their workforce to a $15 minimum hourly wage for any job. St. John’s has been a pioneer in developing and training health outreach workers, home health aides, social workers, and medical assistants to play important roles in patient care, health education, and the prevention and management of disease.
We need financial partners who are committed to our mission, and able to help us serve more needs in more creative ways. We’re excited to have V-Cap as a new source of investment in improving the health of our community.Jim Mangia,