Provider Magazine tracks the pulse of the industry and serves as the leading source of business and clinical news for long term and post-acute care professionals. Long term care providers know that the demands of the consumer are changing. So why do many nursing homes still look the same way they did 20 years ago? One barrier to transformation may be in the ability to find, “low-cost, flexible financing sources”. New financing programs are being created to remove this barrier, and to support Green House home development.
In 2011, the Robert Wood Johnson Foundation (RWJF)
, the nation’s leading health foundation, made a $10 million Program-Related Investment (PRI) in NCB Capital Impact and The Green House Project to make it easier for more providers to obtain flexible financing and build Green House homes. In making this investment, the foundation saw a unique potential for The Green House model to address the nation’s growing shortage of affordable, high-quality long term care options for low-income elders.
As an initiative of NCB Capital Impact
, The Green House Project has also been able to leverage the financial expertise
of this group, “Because NCB Capital Impact is enlisting additional investors—like the Harry and Jeanette Weinberg Foundation
and AARP Foundation
—to leverage RWJF funding in any individual project by a ratio of four to one, the total financing opportunity is actually substantially larger than the foundation’s initial investment.” These resources are creating opportunities for long term care providers to meet the demand of their customer for small, real home environments.
The Green House model has a proven track record for delivering high quality care at roughly the same cost
as a traditional nursing home. Additionally, consumer research
found that caregivers would be willing to drive further and pay more to have this type of home as an option for their loved one.
Because the RWJF and NCB Capital Impact loan pool needs to be entirely distributed by 2014, interested providers should begin exploring the option as soon as possible. To find out more about tapping into RWJF and NCB Capital Impact financing for Green House projects, contact Maura Porcelli at (703) 647-2311