NJ Spotlight published the following article on January 17, 2014. To read the full article, click here.
SOCIAL INNOVATION ACT WOULD USE PRIVATE FUNDS TO SOLVE PUBLIC HEALTHCARE PROBLEMS
TARA NURIN | JANUARY 17, 2014
New Jersey is poised to become the first state to use a mechanism called “social financing” to funnel money directly from investors and foundations to nonprofit organizations running healthcare programs for public agencies.
If Gov. Chris Christie signs the New Jersey Social Innovation Act, approved Monday by both chambers of the Legislature, the state’s Economic Development Agency (EDA) will guarantee $15 million worth of loans in a pilot program that directs private donations to nonprofits working to reduce the number visits indigent patients make to emergency rooms.
Participating groups would use the money to set up health education and prevention programs for public health agencies that are intended to keep clients from overburdening public health resources. According to the bill, investors should be able to reap some of the savings.