How we are financed and funded
In the development phase, VONNE secured £130,000 of development funding from the Department of Health Social Enterprise Investment Fund (SEIF). In addition ACEVO(Charity Leaders Network) pledged £15,000 in cash and in-kind support. In January 2014, a further £150,000 of technical assistance funding was secured from the Big Lottery Fund.
This funding was used to develop the Ways to Wellness service model (financial and operational) and to build capacity, including preparing for delivery of the service in the lead up to seeing patients. For example, research was funded to better understand the evidence base related to potential cost savings that the service might be expected to generate.
Newcastle Healthcare Charities has also indicated that they will be offering monetary support during the delivery phase of the service, for building capacity and to fund peer support in the west of Newcastle.
Bridges Ventures are providing £1.65 million investment, in the form of Social Impact Bonds (SIBs) to support the establishments of the Ways to Wellness service. Their investment will help to pay for the cost of the service in the early years of mobilisation and delivery, ahead of the performance measures being achieved and payments being received from the Newcastle West Clinical Commissioning Group (now part of Newcastle Gateshead CCG).
Commissioners and Outcome-Based Funding
Newcastle West Clinical Commissioning Group (now part of Newcastle Gateshead CCG) have agreed to pay for the provision of social prescribing services to their patients if Ways to Wellness can demonstrate achievement of performance measures that demonstrate the value to patients and a reduction in the use of NHS resources in supporting those patients.
In recognition of both the innovative nature of Ways to Wellness’ approach, and the wider benefits to society and other public services, the Big Lottery Fund Commissioning Better Outcomes Fund and the Cabinet Office Social Outcomes Fund have also agreed to pay up to £2 million and £1million, respectively, in outcome-based funding. As with the CCG, the Big Lottery Fund and Cabinet Office payments will be based on Ways to Wellness’ achievement of the agreed performance measures.
This additional outcomes support is required to enable Ways to Wellness to build its capacity to support up to 3,000 patients a year, before the expected savings can be proven.
Based on projections, Ways to Wellness expects that social investors will be fully repaid within seven years, at which point Ways to Wellness will also be saving the CCG (and thus the NHS) money.