The Neighborhood Services Organization’s Medical Retirement Program ties investor outcomes directly to the health and housing outcomes of individuals experiencing homelessness through value-based care financing.
The Neighborhood Services Organization (NSO) announced Wednesday that it has secured an outcome-based investment to launch Detroit’s most comprehensive medical leave program focused on improving the health of individuals experiencing homelessness. Partners from multiple sectors, including Michigan’s Molina Healthcare, Quantified Ventures, Rocket Community Fund, and The Kresge Foundation, are working with his NSO to build the funding to kick off this best-in-class program and make it even better. Aligned incentives for each organization around health outcomes.
Medical respite, also called recuperative care, is a scientific intervention aimed at breaking the cycle of hospitalization, shelter visits, and returning to the streets for people experiencing homelessness, enabling long-term health and housing improvements. Evidence-based care program.
Located in the recently completed Detroit Healthy Housing Center on the east side of the city, the NSO Medical Retirement Program combines emergency shelter with comprehensive medical and support services.
The NSO program is expected to open to customers later this year and is expected to serve 165 people per year with an expected average length of stay of 30 days, providing service and support to customers on their way to stable housing. To do.
This highly effective approach to involving people experiencing homelessness is projected to generate $1.2 million in annual health savings through stable housing and a reduction in avoidable hospital visits.
Nationally, people experiencing homelessness are five times more likely to be hospitalized than those in detention. The Medical Retirement Program and the 22,000-square-foot Detroit Healthy Housing Center are critical to the effort to end chronic homelessness in Southeast Michigan, and co-locating related services will help improve the medical rest. It will help you achieve your program outcomes.
The five partners have developed interconnection arrangements aimed at ensuring stable revenue for the medical rest program and funding that NSOs can access for program expansion. Discussions are underway with more medical plans and partner hospitals to secure access to the program and secure additional revenue.
The Quantified Ventures team built this value-based care loan. This includes an agreement between Molina Health Care in Michigan and his NSO, where the two parties will work together around achieving improved health and housing for Medicaid members. This innovative, repeatable, performance-based approach ties the majority of NSO’s Molina payments to positive housing outcomes and avoidable reductions in hospital use among program participants.
Investments from Kresge and Rocket Community Fund will revitalize the first phase of medical respite program operations and program growth. Proceeds from the Molina-NSO agreement and other future agreements between NSO and Medicaid Managed Care organizations will drive the return on investment.
Support from Rocket Community Fund, Aetna, and the City of Detroit played a key role in the launch of this initiative and resource for Quantified Ventures to develop sustainable financing for medical respite solutions in Southeast Michigan. provided.
“This investment with our multi-sectoral partners and Governor Whitmer’s addition of medical leave allocations to the 2024 state budget will continue to grow,” said Linda Little, president and CEO of Neighborhood Services. We are grateful for the support from local governments and state governments.” organization. “Medical respite is a key component of our healthy housing approach, helping to meet the complex health care needs of the homeless population served by NSOs, as well as reducing challenges to the health care delivery system. We are optimistic that legislators will recognize the value of providing this important service to Michigans and will approve this funding.”
“Molina is proud to support this innovative and comprehensive approach to bringing stability to the lives of the people we serve,” said Terisca de Jardin, Plan President, Molina Healthcare in Michigan. I think,” he said. “This creative partnership demonstrates our commitment to developing more effective strategies that address the social determinants of health. It is hoped that it will serve as a model for other communities.”
“This is a great example of how ambitious, purpose-driven collaborators can leverage outcomes-based financing to improve health outcomes, address health inequities, and align operations in ways that reduce costs.” said Alison Laing, vice president of health and medical. Human Services at Quantified Ventures. “Pioneering healthcare institutions and community-based service providers are committed to the hard work necessary to launch and sustainably and reproducibly fund this important new community asset in Southeast Michigan. We’re excited to see what’s going on.”
“Safe and secure housing is one of the most powerful determinants of health, and that has never been truer than when you are recovering from a health problem,” said Rocket Community Foundation Executive Director. said Laura Grannemann. “Combating homelessness requires cooperation and all of the above strategies. We are proud to help NSO launch a new and innovative medical retreat.”
“Dealing with homelessness requires bold solutions. This approach shifts from seeing homelessness as an abstract problem to be managed, to intervening holistically in the lives of the homeless and improving housing. It reflects an important shift in reaching a stable point in 2020,” said Wendy Lewis-Jackson, Cressge Detroit Program Managing Director. “We are proud to work with partners who are not afraid to approach problems boldly, creatively and inclusively.”
“We are proud to be one of the many partners who have come together to improve the health and housing of our homeless residents,” said Julie Schneider, director of the city’s Housing and Activation Department. said. The department provided him with $4.1 million in community development block grants to help develop the Detroit Health Housing Campus. “We appreciate the NSO’s leadership and commitment to holistic care for the most vulnerable populations.”