FOR IMMEDIATE RELEASE
September 18, 2024

Media Contact
Matt Lindsay, matt@rehealthcollaborative.org, 202-425-1792

ReHealth Collaborative Executes First Loan from its Family Focused Recovery Fund as Part of $6MM+ Blended Financing to Open New Substance Use Disorder Treatment Facility for Pregnant Women and Parenting Mothers

ReHealth Collaborative’s $1 Million Loan to Volunteers of America Southeast Louisiana Subsidiary Finances New Orleans’ First Family-Focused Recovery Center Through Novel Outcomes-Based Loan Repayment Model

BALTIMORE, MD—ReHealth Collaborative LLC (ReHealth) announced today that it has executed its first-ever outcomes-based loan with a $1 million transaction to help open Volunteers of America Southeast Louisiana’s (VOA SELA) new Family-Focused Recovery center in New Orleans. ReHealth’s loan is a key component of the $6.3 million blended capital stack VOA SELA and its real estate development subsidiary Renaissance Neighborhood Development Corporation have built to enable the new program to launch.

When it opens in Fall 2025, VOA SELA’s Family Focused Recovery (FFR) program will provide residential treatment and wrap-around services to pregnant, post-partum, and parenting women with substance use disorder (SUD). The FFR program model focuses on providing whole-person care, including individual and family therapy, peer support, and medication-assisted treatment, and promoting long-term recovery outcomes for women and their children.

This will be the only program in New Orleans where children will be able to live with their mothers during treatment. While women are receiving intensive treatment and wrap-around services, their children benefit from supervision, care, and family support services. After residential treatment ends, mothers and their children can stay in residence while they pursue intensive outpatient treatment and connect to external resources including housing and employment.

Located in downtown New Orleans near University Medical Center, the VOA SELA program will have capacity to serve approximately 120 clients annually while providing easy access to nearby medical and other social services. Louisiana ranks in the bottom five of states in both maternal mortality rate (37 deaths per 100,000 live births) and drug overdose death rate (54.5 deaths per 100,000 in population), according to data from the National Center for Health Statistics. 

"Building a client-centered facility and robust program model that supports women and their families on the path to recovery requires significant investment - both up front and in the early years of operations,” said Jackie Kellett, assistant vice president of integrated and behavioral health, VOA SELA. “ReHealth’s provision of patient, flexible, and low-cost capital has made it possible to get construction underway, and it’s exciting to see this initiative come to life.”

With a total building renovation cost of $6.3 million, ReHealth’s $1 million loan from its FFR Fund provides VOA SELA with much needed capital for facility renovations and program operations. ReHealth’s loan is part of an innovative capital stack built by VOA SELA that brings together multiple lenders, grantors, and financing mechanisms, including new market tax credits, state historic tax credits, and value-based contracts facilitated by Quantified Ventures to enable loan repayments.  

An important and novel feature of the ReHealth loan is that a portion can convert to an outcomes-based repayment model with concessionary terms. At the time of program opening, $500,000 can convert to a lower interest rate and be collateralized by performance payments from value-based contracts between VOA SELA and Medicaid Managed Care Organizations (MCOs) in Louisiana.

"Non-profits need concessionary capital to launch, operate, and grow programs that meaningfully impact the lives and health of underserved populations," said Henderson Brown, interim president of ReHealth Collaborative. “This inaugural loan from our Family Focused Recovery Fund validates the catalytic impact ReHealth offers to organizations like VOA SELA, and we look forward to replicating this model in other areas across the country.”

Humana seeded ReHealth Collaborative’s FFR Fund to support concessionary investments that help meet the increasing demand for SUD services among pregnant and parenting mothers through the establishment and expansion of FFR programs across the county.

As a strong advocate for the FFR program model, Humana has committed to execute a value-based contract with VOA SELA that ties payment to value and supports long-term sustainable program operations. VOA SELA will continue work with Quantified Ventures to secure other value-based contracts with MCOs based on the health outcomes generated by the FFR program. These value-based contracts recognize the value generated by the program and augment the rate-based revenue available to robust residential treatment models that alone is not sufficient to cover operational costs.  

About ReHealth Collaborative

ReHealth Collaborative is a non-profit organization with a mission to attract and deploy concessionary capital to not-for-profit organizations to advance solutions that help to restore and improve the health and resilience of people, communities, and the environment. ReHealth’s Family Focused Recovery Fund delivers sorely needed capital to programs that provide comprehensive services for pregnant women and parenting mothers with substance use disorder in a residential environment that also welcomes their children.

About Humana

Humana Inc. is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large.

About Quantified Ventures

Quantified Ventures (QV) is a nationally recognized leader in implementing innovative funding and financing strategies for climate, environmental, health, and human services projects. Our success stems from quantifying project outcomes, identifying untapped financial resources, and structuring innovative partnerships that engage new capital providers and stakeholders. QV is a certified B Corporation and WBENC woman-owned business that has worked extensively to provide technical assistance for establishing and administering water, energy, and climate financing programs.

About Volunteers of America Southeast Louisiana

For over 125 years, Volunteers of America Southeast Louisiana has empowered and uplifted individuals including veterans, at-risk youth, low-income seniors, men and women returning home after incarceration, homeless individuals and families, persons with intellectual and developmental disabilities, families in need of affordable housing, and those recovering from addictions. Our work touches the mind, body, heart – and ultimately the spirit – of those we serve, integrating our deep compassion with highly effective programs and services.