Elevance Health Foundation Builds on Community Health Programming
As part of our efforts to fulfill our purpose of improving the health of humanity, Elevance Health’s philanthropic arm has added impact investing to its set of initiatives for the next five years.
“To complement our grantmaking with community, regional, and national nonprofit organizations, we have extended the Elevance Health Foundation’s reach to impact investing,” said Dr. Shantanu Agrawal, chief health officer at Elevance Health. “Making loans available to small businesses strengthens the web of partnerships, generates positive social and community influence, and supports our holistic approach to health.”
Going Beyond Traditional Grantmaking
While the Foundation’s traditional grantmaking supports nonprofit organizations, impact investing expands financial support to local small businesses, social enterprises, entrepreneurs, and nonprofits by providing loans with lower interest rates. These low interest loans can foster economic growth and development while preserving the Foundation’s assets for continued community investment.
Small businesses will use the loans to address health-related social needs associated with behavioral health, food security, and healthcare access.
We’re proud of what we’ve accomplished, and our evolving strategy will position us as a community health catalyst, driving innovative, scalable, and valued solutions."
Chief Health Officer, Elevance Health
Small businesses or social enterprises that serve whole-health needs and communities with a gap in social and behavioral healthcare line up with the Foundation’s priorities. A few examples may include community grocery stores or co-ops in food deserts, fitness centers, and behavioral healthcare providers.
Through its asset manager Mission Driven Finance, the Foundation will consider and award loans to programs in all states, with a current focus on California, Virginia, Ohio, New York, Indiana, Georgia, Missouri, and Texas.
First Loan Announced
Psyched Services, which provides mental health services to 380 schools across California, received the first impact investment loan. Mission Driven Finance will manage most of the impact investing funds and help borrowers ensure the longevity of their businesses.
“This funding will help us expand our mental health initiatives, which will enable us to provide critical support to students, caregivers, and educators in under-resourced communities throughout California,” said Psyched Services founder and Chief Executive Officer Kristyn Corley.
The Foundation will evaluate the success of its investments through key performance Indicators (KPIs), which will be determined by the type of organization supported. This may include reach of initiatives for communities served, range of people impacted by the initiatives, increase in access to care, reduction in barriers to care, and health-specific measures.
Why Include Small Businesses?
Local small businesses positively impact communities. More than 60% of consumers say they shop at small businesses for this reason. And 75% of consumers agree that small businesses are essential to their community.
“Four years ago, the Foundation refined its approach and identified key focus areas where we believed we could make the greatest impact in our communities,” Agrawal said. “While we’re proud of what we’ve accomplished, our evolving strategy will position us as a community health catalyst, driving innovative, scalable, and valued solutions.”
The Foundation recently fulfilled its three-year commitment to grant $90 million to improve the health of communities across the nation in the areas of maternal health, behavioral health, food as medicine, and disaster relief. As part of its expanded approach, the Foundation has pledged to allocate $150 million in grants and loans over the next five years. That total includes $10 million to be used for social impact investing.
Related Stories
Subscribe
Keep up with our latest news, research, and stories.
Subscribe to financial alerts on our investors site