Vital Healthcare Capital and Robert Wood Johnson Foundation Announce $10 Million Loan to Commonwealth Care Alliance
June 24, 2014
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
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.
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.