Vital Healthcare Capital and Robert Wood Johnson Foundation Announce $10 Million Loan to Commonwealth Care Alliance
- Pioneering model of care for vulnerable populations receives financing to support rapid growth in population served
- Loan marks first investment from Vital Healthcare Capital toward pioneering models of healthcare
BOSTON--(BUSINESS WIRE)--Vital Healthcare Capital (V-Cap) and Robert Wood Johnson Foundation (RWJF) today announced a $10 million investment in Commonwealth Care Alliance (CCA) to support a promising model of care for patients who are dually eligible for Medicare and Medicaid.
“This loan delivers on V-Cap’s mission to meet the capital needs of organizations and providers committed to quality care to our most vulnerable populations.”
The loan – the first provided by the new social-impact fund, Vital Healthcare Capital, through support from the Robert Wood Johnson Foundation – provides funds needed by CCA for financial reserves required by the Commonwealth of Massachusetts as CCA rapidly expands membership in its programs. The loan is also intended to support CCA’s commitment to enhancing the roles of frontline healthcare workers in delivering quality person-centered care.
CCA’s expansion comes as Massachusetts continues to pioneer integrated, patient-centered care for people who are eligible for both the federally run Medicare program and the state and federally run Medicaid program. The newly created Massachusetts One Care: MassHealth plus Medicare program was the first demonstration program for dual eligibles to launch under the Affordable Care Act (ACA). Since its beginning in October 2013, CCA has enrolled 7,846 members in this innovative program for dual eligibles ages 21-64—more than any other participating plan. CCA also pioneered care for dual eligibles over 65 under its Senior Care Options (SCO) program, which began in 2004 and currently serves 6,000 patients.
While this so-called “duals” population comprises only 15 percent of Medicaid beneficiaries, it comprises upwards of 40 percent of spending for Medicare and Medicaid, making it a critical component of reforms aimed at improving the quality and value of healthcare.
CCA has proven that its model of care works. For example, CCA’s Senior Care Option Medicare Advantage Special Needs Plan has maintained a 4.5 star rating from the Centers for Medicare and Medicaid Services for three consecutive years while demonstrating a nine-year cost trend that is significantly lower than the larger Medicare program. In addition, when looking at key metrics such as hospital admissions and re-admissions, CCA has repeatedly proven that its high-engagement care model helps vulnerable patients live healthier lives.
“In partnership with Robert Wood Johnson Foundation, we are honored to announce our investment in Commonwealth Care Alliance and its integrated model of care,” said Steven Weingarten, CEO of the newly launched Vital Healthcare Capital. “This loan delivers on V-Cap’s mission to meet the capital needs of organizations and providers committed to quality care to our most vulnerable populations.”
“We are so grateful to Vital Healthcare Capital and Robert Wood Johnson Foundation for their support as we continue to address the complex needs of the patients we serve,” said Commonwealth Care Alliance CEO Robert J. Master, MD. “We knew that obtaining reserves financing would be critical to enabling us to scale up our ability to provide fully integrated care for complex and hard to serve individuals, and will be critical to others like us around the country.”
“Commonwealth Care Alliance’s model is a shining example of results-driven care,” said Robert Wood Johnson Foundation Senior Program Officer Michael W. Painter, MD. “As the Affordable Care Act reforms that serve dual eligible patients take effect in Massachusetts and beyond, this type of investment could not be more critical.”
The $10 million loan to CCA marks the official launch of V-Cap – a new institution dedicated to meeting the capital needs of organizations with innovative, high-impact models of care. V-Cap was founded to provide quality healthcare delivery and good jobs in communities that need it most. Over the next five years, V-Cap will establish a $100 million revolving loan fund, leveraging $500 million of total project capital for organizations that offer the promise of healthcare reform for patients in low-income communities.
“Our commitment to CCA is the first of what will be many more high-impact investments that support the healthcare needs of our nation’s most vulnerable populations,” said Weingarten.
About Vital Healthcare Capital
Vital Healthcare Capital (V-Cap) is a nonprofit community development financial institution founded on the dual mission of supporting quality healthcare and good healthcare jobs in low-income communities. Over the next five years, Vital Healthcare Capital will establish a $100 million revolving loan fund, leveraging $500 million of total capital, to support projects that show particular promise in improving healthcare and health employment for vulnerable populations in communities that have traditionally lacked resources. V-Cap’s first transaction, made in partnership with Robert Wood Johnson Foundation, involved a $10 million loan to scale the integrated care plan of Commonwealth Care Alliance in Massachusetts. V-Cap is led by an experienced management team with backgrounds in finance, healthcare, labor and community development.
About the Robert Wood Johnson Foundation
For more than 40 years the Robert Wood Johnson Foundation has worked to improve the health and health care of all Americans. We are striving to build a national Culture of Health that will enable all Americans to live longer, healthier lives now and for generations to come. For more information, visit www.rwjf.org. Follow the Foundation on Twitter at www.rwjf.org/twitter or on Facebook at www.rwjf.org/facebook.
About Commonwealth Care Alliance
Commonwealth Care Alliance is a nonprofit care delivery system committed to providing integrated healthcare and related social support services for people with complex needs covered under Medicaid and for those “dually eligible” for both Medicaid and Medicare. Commonwealth Care Alliance offers the Senior Care Options Program (HMO SNP) for individuals ages 65 and older, who have Medicare and MassHealth Standard or just MassHealth Standard alone, and One Care: MassHealth plus Medicare, for dual eligible individuals ages 21 to 64. These comprehensive health plans provide all the services covered under Medicare and MassHealth, and other benefits as determined necessary by the members’ interdisciplinary primary care team. Senior Care Options Program is a health plan with a Medicare contract and a contract with the Commonwealth of Massachusetts/EOHHS. Enrollment is voluntary.
For more information on Commonwealth Care Alliance, visit www.commonwealthcarealliance.org or call 1-866-610-2273.
Commonwealth Care Alliance is not affiliated with the Commonwealth Health Insurance Connector Authority’s Commonwealth Care program.