CVS Health Invested $67M in Affordable Housing Across U.S. Last Year
Aiming to help provide support to underserved populations across the U.S., CVS Health invested $67 million in affordable housing in 2019. The investments helped to create more than 2,200 affordable homes with supportive services for individuals and families across 24 cities in six states, according to company officials.
Through the 2019 investments, nearly 300 Permanent Supportive Housing (PSH) units will be made available for residents who are victims of domestic violence, experiencing homelessness, affected by chronic illness, requiring behavioral health and addiction treatment or are challenged by similar life and health situations. There are 450 additional units dedicated to housing seniors, 59 units reserved specifically for veterans and their families, and 38 units dedicated to housing American Indian individuals and their families, officials noted.
In 2020, CVS Health expects to surpass 2019 investment totals and the number of states impacted, they added.
“Providing affordable housing options to people who are facing significant challenges can be their first step on a path to better health," Karen S. Lynch, executive vice president, CVS Health and president, Aetna Business Unit, said in a statement. "However, we understand that more support is often needed - that is why we work with community organizations to provide access to services such as independent living skills, cooking and nutrition, financial literacy, health information classes, resident outreach and engagement, client centered treatment plans and social support."
Research has indicated that 70 percent, or more, of a person’s health outcomes are driven by SDOH factors such as housing insecurities, and more recently, investments in this area have surged. In November, for instance, 14 of the nation’s largest health systems announced a commitment of $700 million toward community-based initiatives aimed at addressing the economic and environmental drivers behind a widening disparity in health outcomes. Most of those dollars will go to providing affordable housing with each participating health system submitting annual data to provide metrics to track their activities.
To this end, a November story in Bloomberg noted that while the U.S. spends 18 percent of its gross domestic product (GDP) on healthcare, versus 8.6 percent in the other 35 countries in the Organization for Economic Cooperation and Development (OECD), other nations in the OECD spend $2 on social services for every $1 they spend on healthcare. In the U.S., however, each dollar of health spending is matched by only 60 cents of social support. This same story profiled how a UnitedHealth initiative has provided supportive housing to 350 homeless Medicaid patients. The project is an effort to reduce the $17 million UnitedHealth spends on medical care for that population.
Efforts to address housing insecurity are a core part of Destination: Health, a series of CVS Health business programs focused on helping people improve their health outside of a clinical setting. The initiatives only gained steam after the $69 billion merger between the mega-pharmacy retailer and health insurer Aetna was completed in November 2018.
While CVS Health has invested in affordable housing in different locations across the country, California is a specific focus of the investment strategy. "We have made more than $160 million of affordable housing investments in California over the past twenty years, including nearly $50 million in the past two years alone," said Kristen Miranda, California market president for Aetna, a CVS Health company. "These investments are helping to address the unique needs of residents in California, helping to improve health at both the individual and community level. We will continue to look for opportunities where we can invest to support those who need it the most throughout the state."
The organization lists several examples of California-based housing projects, with one example being an $8.1 million commitment to finance the development of 85 affordable housing units in collaboration with the East LA Community Corporation (ELACC) and New Directions for Veterans (New Directions). Here, residents will have access to services such as after school tutoring, employment services, substance use treatment, legal assistance, peer support and advocacy and medication management.
Another example is in the form of a $25 million commitment designed to construct and/or rehabilitate over 500 units of affordable housing in five cities throughout California. These units will be offered to a wide range of individuals, including those requiring mental health services, seniors, as well as veterans and their families.
In addition to California, CVS Health's 2019 affordable housing investments were spread across the country to locations in Georgia, Hawaii, New Hampshire, Oregon and Texas. In 2020, CVS Health said there will be $25 million committed to investments in Ohio and another $50 million in investments currently being underwritten coast to coast.
"We recognize the strong connection between housing and health," said Keli Savage, head of impact investment strategy, CVS Health. "We are focused on cultivating the right relationships with community organizations across the country and combining strategic investments in housing with services to address the specific needs of our communities."
