Other sectors

Health

Historically the overwhelming majority of the UK health budget has been spent on providing acute hospital services. Relatively little is currently being spent on preventative services.

Evidence suggests that considerable savings could be generated from shifting the emphasis of health services away from the reactive provision of ‘crisis’ health services (e.g. hospital care) and towards the proactive provision of preventative health services and those which help people better manage long-term health conditions such as diabetes and asthma.

Shifting the emphasis of the health system in this way will require significant up front investment in the redesign of patient pathways for long-term conditions, and the development and scale-up of community-based health services.

In a context of constrained budgets, Social Impact Bonds are well-positioned to raise this necessary investment at minimal risk to commissioners. Over time, as the health of the population improves, savings from reduced hospital usage would enable investors to be repaid. Social Finance is interested in hearing from health commissioners that might be interested in this approach.

Professor Paul Corrigan, a leading adviser on improving health systems, explores these issues in discussion paper we published in September 2011.

Social Finance is also working with the pioneering BeActive physical activity programme in Birmingham to assess the impacts of free access to physical exercise facilities, and wider activities to promote physical activity, on health and other outcomes. This includes exploring whether a Social Impact Bond or other form of outcome-based contract could have a role in supporting the programme on the future. Matrix Knowledge are providing the cost benefit analysis for this study. The work has been made possible thanks to the support of the Barrow Cadbury Trust.

Drug Rehabilitation

Substance misuse has far-reaching impact on society. People who are dependent on drugs are significantly more likely to suffer health problems, go to prison and claim benefits than non-users.

Social Finance is currently evaluating the feasibility of structuring a Social Impact Bond to fund services that enable recovery from drug dependency, reduce offending and help the service user rebuild their life. Social Finance is keen to support commissioners and service providers in developing these services.

Social Finance is also interested in exploring the potential for Social Impact Bonds in the following sectors:

• Education
• Employment
• Youth
• Housing and Homelessness