Resolve Social Benefit Bond: Australian first social impact investment to improve mental health outcomes
In collaboration with Flourish Australia and Social Ventures Australia, the NSW Government has developed a new social impact investment which seeks to improve the wellbeing of mental health patients and reduce their reliance on health and other government services.
From October 2017, Flourish Australia will deliver the Resolve Program to approximately 530 patients in Nepean Blue Mountains and Western NSW Local Health Districts (LHDs).
Each Resolve participant will be provided with comprehensive, recovery-oriented mental health support over two years, tailored to their individual needs. Participants will benefit from a residential service for periodic crisis care; integrated psychosocial mental health support; and a warm line for after-hours support from peers.
The Resolve Program will be supported by a $7m Social Benefit Bond, raised and managed by Social Ventures Australia. If the Resolve Program performs as expected, investors will receive returns of approximately 7.5% p.a. Information about the program. Find out how to invest.
The Resolve SBB is the first social impact investment developed in Australia focussed on addressing mental illness. It follows the Newpin and The Benevolent Society Social Benefit Bonds implemented in 2013 and the On Tracc social impact investment developed in 2016.
Negotiations are also progressing for social impact investments to achieve outcomes for vulnerable young people transitioning to independence, and patients with chronic health conditions.
A quick guide to the Resolve Social Benefit Bond
Policy area: Mental Health - NSW Govenrment
Investment type: Social benefit bond
Status: The Resolve program will commence in October 2017
Intervention group: The program is expected to support approximately 530 mental health patients in Western Sydney and Nepean Blue Mountains LHDs.
Outcome measurement: The key outcomes measure is the reduction in hospital use by Resolve participants relative to a control group.
Term: 7.75 years
Parties: Service Provider - Flourish Australia; Government Agency - NSW Health; Financial Intermediary - Social Ventures Australia
SBB principal: $7 million
Expected contract value: $21.7 million
Performance: The program is aiming to achieve a 25% reduction in the utilisation of health services relative to the control group. In this case, investors are expected to receive an Internal Rate of Return of 7.5% per annum.