A first SIB for health in the US shows the concept developing after a couple of days’ without any news:
Fresno Is Site Of First-Ever Health-Care ‘Bond’ Project
The Fresno Bee
Fresno has been chosen to pilot a health-care project that could lead to new ways nationally to improve public health and reduce costs for treating chronic diseases.
About 200 lower-income children with asthma are at the center of the two-year demonstration project to show the financial benefits of asthma management and entice investors to invest in a social-impact bond.
Only a handful of such bonds have been sold in the U.S. — most for prisoner recidivism. Fresno would be the first for health care.
“A health-impact bond is a way of raising money for a proven health program and prevention that result in better health outcomes and lower costs,” said Rick Brush, founder and CEO of Collective Health, a Connecticut-based social enterprise company that helped develop the idea for the asthma demonstration project.
The California Endowment has put up $660,000 to launch the Fresno project with Collective Health and Social Finance, Inc., a Boston nonprofit organization and social-impact bond intermediary.
The endowment’s funding will pay for data collection and evaluation to demonstrate that the number of emergency room visits by children with asthma can be reduced through disease management.
Getting investors to pony up money for a social-impact bond will be “based on our ability to demonstrate we’ve saved money on health-care spending and we can pay back investors a portion of those savings,” Brush said.