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 lent built on an initial $10 million of support from the Robert Wood Johnson Foundation, used at V-Cap’s launch in 2014 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.
Bank of America: “This investment is a great example of why we value the work of CDFI intermediaries around the country. Our investment in V-Cap affords us an opportunity to support innovation in lending in the healthcare industry, a sector that is undergoing dramatic and rapid change. We are excited to be among one of V-Cap’s first investors. It has demonstrated the value of bringing together equity and debt to achieve scale that will fund providers focused on providing better health care to low- and moderate-income consumers.”
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.