1 / 25

Impact Investing and Health

Impact Investing and Health. Agenda. I. A bit about me, a bit about you. II. Understanding and navigating the alphabet soup. III. Increasingly diverse set of allies – an illustration. IV. How to get started. V. Your questions (and maybe even some answers). Introductions.

ponce
Download Presentation

Impact Investing and Health

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Impact Investing and Health

  2. Agenda I. A bit about me, a bit about you II. Understanding and navigating the alphabet soup III. Increasingly diverse set of allies – an illustration IV. How to get started V. Your questions (and maybe even some answers)

  3. Introductions • Me/Imprint – why am I here? • You – why are you here?

  4. Navigating the Alphabet Soup Sustainable investing Ethical investing Values investing Environment, social and governance (ESG) Mission-related investing Program related investing Social venture investing Mission investing Double/triple bottom line Venture philanthropy Blended value Socially responsible investing (SRI): “Investments designed to avoid or mitigate negative social and environmental impacts” Impact investing: “Investment activity designed to have a positive impact on social or environmental issues”

  5. Sifting through the diversity Why: Motivations What: Priority issues Basic taxonomy of approaches

  6. Different rationales for impact investing

  7. RANGE OF SEGMENTS • Healthcare delivery • IT and admin • Supplying care (drugs, devices & diagnostics) • Organizing and optimizing care HEALTH CARE • Food and nutrition • Fitness • Wellcare WELLNESS • Family economic security • Community infrastructure • Environmental health SOCIAL DETERMINANTS OF HEALTH

  8. SOCIAL DETERMINANTS ENVIRONMENTAL HEALTH Air Quality Green Products Green Built Environment Workplace Safety Career Ladders Transit-Oriented Development HEALTH CARE Childcare Small Business Support Public Transportation WELLNESS Safe Sidewalks & Trails Inclusive Insurance Access to Financial Services Community Facilities Affordable Housing Social Services FAMILY ECONOMIC SECURITY COMMUNITY INFRASTRUCTURE

  9. WELLNESS FOOD & NUTRITION FITNESS School Food School PhysEd Baby Foods Play-space Urban Farming Fitness & Recreation Centers Local Food Infrastructure HEALTH CARE Community Groceries Exer-gaming Mobile Fitness Apps Mobile Food Apps Employer Wellness Programs Virtual Coaching Peer Groups Remote Monitoring Direct-to-Patient Outreach Health Media “WELLCARE”

  10. HEALTHCARE Billing & Payment Low-Cost D,D&D Simulations & Gaming Scheduling & Back-Office Mobile Diagnostics DRUGS, DEVICES & DIAGNOSTICS EMRs HIEs IT & ADMIN Drug Compliance & Delivery Healthcare Workforce Dental Care FQHCs & Safety Net Clinics Workforce Optimization DELIVERY OF CARE ORGANIZING & OPTIMIZING Self-Health Hospitals & Med Centers Resource Allocation Specialty Clinics Mobile Vans Decision-Support Home Care Risk & Data Analysis Retail Clinics Kiosks Case & Care Management Telemedicine

  11. Impact on Risk & Return? There is significant theology on both sides of this question • Positive • Environmental & social drivers are material to business • Growing market opportunities (e.g. Clean Tech) • Can reduce risk (see BP) and is a sign of strong management • Negative • A limited universe intrinsically reduces return expectations • New field and managers equals more risk • You cannot effectively manage to multiple bottom lines

  12. Risk/Return: Impact vs. Non Impact Managers

  13. Screening Statistics

  14. Mix of approaches Enterprise Community Engagement

  15. Portfolio example Enterprise Community Engagement

  16. Allies – conventional and otherwise • Other people in this room! • Community foundations • Strategics/corporates • Jobs and community oriented funders

  17. Healthcare as employment engine: by the numbers Why healthcare? ‘Cause that’s where the jobs are… Today: 16.8M jobs, in784k companies 2020: +5.7M jobs (half from growth, half age-out replacement) Growth segments: ACO’s, managed care, home health, residential Size of growth: 1.3M home aides, .5M orderlies & clerks, .7M nurses Median wages: $20-30k / year; nurses $65k / year

  18. Three tiers of healthcare business models:Seeking non-fungibility of labor Better jobs = better health = better business +1 Neutral models 0 Negative models – abusive to labor -1

  19. Business models as driver of health (or not!) Cost Good Jobs Profit Quality

  20. Now that they’re sorted, what to do? Investing approaches by tier Better jobs = better health = better business Develop and scale aligned models for direct impact and demonstration Build market share - Support broader transition to aligned models +1 Neutral models Develop clearer ways to identify better practitioners Build business case for better practice Develop levers to support better practice 0 Abusive models Avoid –screen out Shine spotlight on negative practice Identify “better” version of presumed abusive models -1

  21. Where/how people get stuck • Actively stuck: Stakeholder divergence • “Theology” of returns for SRI [negligible financial impact] • Concern about competing with grant-making • Questions about deal flow • Passively stuck • Overwhelmed/challenge identifying entry point • Question of “how” – sourcing, execution and management

  22. Learnings and observations • Diversity of ways to use investments to drive impact • Context matters – your organization and your goals should drive many of the tools and approaches • Be proactive in the marketplace – drives good practice and multiple returns • Use or build your strengths – knowledge, networks and capacity you have or want to build • Seek, manage and measure what matters – thesis driven approach • Don’t create disincentives • Importance of internal leadership • Action learning – avoid abstract debates • Be smart about leveraging partners – intermediaries, peer organizations and other allies What to do How you do it How you get started

  23. Creating a program: Getting to an investment policy statement Mission Objectives Financial Parameters Context Investment Policy • Identify target areas and role of investment capital – key impact driver? Complement philanthropy? Support interests more broadly? • Integrate with financial management – current assets, anticipated expenditures/inflows, liquidity needs, and risk tolerances • Determine the level and nature of involvement of various stakeholders; interests, biases, priorities and concerns • Objectives • Allocations (targets and bands/limits) • Investment process • Decision-making and governance • Financial and mission reporting

  24. Observations The context drives the right approach – there is no one size fits all approach Thoughtful, deliberate execution is critical to success of any mission investing program Finding a clear entry point is critical – you can’t answer all of the questions on the drawing board Leveraging/intersecting with existing strong processes can be important Investing is investing – it is difficult to do well and takes discipline and care

More Related