Elevance Health to back small businesses on health equity
The new program will provide loans to businesses that support health equity in under-resourced communities.
Photo: SDI Productions/Getty Images
Elevance Health Foundation, the philanthropic arm of Elevance Health, has pledged a $10 million commitment to launch a new program that will provide loans to small businesses looking to address health equity.
The program will provide loans to social enterprises and entrepreneurs that support health equity in under-resourced communities.
Through loans with interest rates below Prime rates, the partners will address social needs including access to care, food insecurity and health disparities, Elevance said.
WHAT'S THE IMPACT?
The Foundation said it will leverage these investments to provide access to affordable financing to "purpose-driven" businesses that may not have access to traditional banking, and whose growth has the potential to advance health equity.
The idea is that more accessible capital across business stages can enable a wider range of businesses, including minority/women-owned ones, to scale equity efforts in their communities.
Elevance will make investments in seven states initially, prioritizing communities it thinks can advance equity in a meaningful way. The states are California, Florida, Georgia, Indiana, Nevada, Missouri and Texas.
The Foundation is launching the initiative in partnership with Mission Driven Finance, a Certified B Corporation in California, which mobilizes capital to increase inclusive and equitable access to education and health.
As part of the $10 million commitment, Mission Driven Finance will be managing an $8 million fund for the initiative. Plans for the remaining $2 million will be announced at a later date.
THE LARGER TREND
In April Elevance Health reported net income of $2.25 billion in the first quarter of 2024, a 12.2% from the $2 billion reported in the same quarter for 2023.
The insurance giant formerly known as Anthem reported no significant impacts to operations and cash flow from the February 21 Change Healthcare cyberattack that continues to affect the revenue of hospitals and physician practices.
Elevance margins were not as affected as those of insurers more heavily invested in the MA market.
Starting in 2027, health equity index measures will be used in determining a plan's bonus payments for Medicare Advantage Star Ratings.
ON THE RECORD
"Through impact investing, the Elevance Health Foundation will work toward advancing whole health by extending beyond its current grant-making commitments to provide loans to small businesses, as well as social enterprises, owned or led by historically marginalized populations," said Dr. Shantanu Agrawal, chief health officer of Elevance Health. "We will use a health equity lens to develop partnerships, operations, measurement of impact with local enterprises, and overall share our purpose-driven approach to community investments."
"The 'mission' in our name is to help businesses and community organizations grow their impact with access to sufficient, affordable capital, so that they can create more inclusive economic opportunity and health equity," said Lauren Grattan, cofounder and chief community officer at Mission Driven Finance. "Partnering with Elevance Health Foundation enables us to accelerate the flow of capital across the U.S. where it normally doesn't, but should."
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
