Unhoused to Receive Temporary Housing and Health Care Services in Redondo Beach Thanks to $1.3 Million Grant from Health Net

Rhea-AI Summary

Health Net, a Centene company, has announced a $1.3 million grant to the City of Redondo Beach to address homelessness. The funds will support:

• Purchase of 25 additional Pallet Shelter housing units
• Implementation of an Alternative Crisis Response (ARC) pilot program

The grant aims to provide temporary housing and comprehensive health services for the unhoused population. This initiative is part of Health Net's broader commitment to tackling homelessness in Los Angeles County, with over $39 million invested since 2023 in various programs. The effort aligns with Centene's $900 million partnership with McCormack Baron Salazar to construct affordable housing in eight states, addressing critical housing shortages for vulnerable populations.

Positive

• Health Net's $1.3 million grant to Redondo Beach for homeless housing and services
• Addition of 25 Pallet Shelter housing units for temporary accommodation
• Implementation of Alternative Crisis Response (ARC) pilot program for wraparound services
• Health Net's $39 million investment in homelessness initiatives since 2023
• Centene's $900 million partnership with McCormack Baron Salazar for affordable housing

Negative

• None.

Insights

Public Health Policy Analyst

The $1.3 million grant from Health Net to the City of Redondo Beach represents a significant investment in addressing homelessness and mental health issues. This initiative combines two important elements: temporary housing and crisis response services.

The 25 additional Pallet Shelter units will provide immediate relief to individuals experiencing homelessness. These 64-square-foot residences, equipped with basic amenities, offer a stepping stone towards stability. However, it's important to note that while this is a positive step, it's a temporary solution and doesn't address the root causes of homelessness.

The Alternative Crisis Response (ARC) pilot program is particularly innovative. By providing non-violent mental and behavioral health services, it could potentially reduce the burden on emergency services and law enforcement, while offering more appropriate care for individuals in crisis. If successful, this model could indeed be replicated in other California regions, potentially transforming how cities approach mental health crises among the unhoused population.

Health Net's broader $39 million investment since 2023 in various homelessness initiatives across Los Angeles County demonstrates a comprehensive approach to this complex issue. The focus on street medicine and housing transition services aligns with current best practices in addressing homelessness.

However, it's important to monitor the long-term outcomes of these initiatives. While temporary housing and crisis response are important, sustainable solutions will require addressing systemic issues such as affordable housing shortages, income inequality and gaps in mental health services. The partnership between Health Net, local government and service providers is promising, but ongoing evaluation and adaptation will be key to its success.

Healthcare Economics Expert

This grant from Health Net, a Centene subsidiary, represents a strategic investment in social determinants of health. By addressing homelessness and mental health issues, Health Net is likely aiming to reduce long-term healthcare costs associated with chronic homelessness.

The Pallet Shelter program and Alternative Crisis Response (ARC) pilot could potentially lead to:

• Reduced emergency room visits
• Improved mental health outcomes
• Better management of chronic conditions
• Increased access to preventive care

These outcomes, if achieved, could translate into significant cost savings for the healthcare system, particularly for Medi-Cal, California's Medicaid program. Health Net, as a Medi-Cal managed care plan, stands to benefit from these potential savings.

Moreover, this initiative aligns with the broader trend of healthcare payers investing in social determinants of health. Centene's $900 million partnership with McCormack Baron Salazar for affordable housing further underscores this strategy.

However, it's important to note that the return on investment for such initiatives can be challenging to quantify and may take years to materialize. The success of this program will depend on effective implementation and coordination among various stakeholders.

From an investor perspective, while these initiatives may impact short-term profitability, they could enhance Centene's competitive position in the Medi-Cal market and potentially lead to long-term cost savings. This approach also aligns with growing ESG (Environmental, Social and Governance) considerations, which are increasingly important to investors.

Funds to support 25 tiny homes and the implementation of a new crisis response program

SACRAMENTO, Calif., July 30, 2024 /PRNewswire/ -- Today, Health Net, one of California's most experienced Medi-Cal managed care health plans and a Centene Corporation (NYSE: CNC) company, announced a $1.3 million grant to the City of Redondo Beach. The funds will help purchase an additional 25 housing units for the city's Pallet Shelter program, which provides temporary housing for people experiencing homelessness while subsequently connecting individuals to case management and wraparound services that assist with permanent housing opportunities.

The grant will also support the implementation of an Alternative Crisis Response (ARC) pilot program, which provides wraparound services for an individual's physical and behavioral health, including trauma-informed care, crisis de-escalation services, in-person intervention and transportation to behavioral health services for the unhoused population of Redondo Beach.

"Investing in solutions for those facing homelessness is a strategic imperative for building stronger, more resilient communities," said Plan Chief Product President at Health Net, Martha Santana-Chin. "Our continued commitment goes beyond philanthropy; it's about creating sustainable change at the local level and offering support where it's needed most."

"Redondo Beach City Council and Health Net have been strong community leaders, partnering with the County on compassionate and dignified solutions," said Los Angeles County Supervisor Holly J. Mitchell. "They have really stepped up to implement solutions we know work, including housing and wrap-around services. It's an honor to support Redondo Beach's pallet shelter expansion with an $800,000 award from the 2nd district homelessness funds."

The pallet homes are 64-square-foot residences equipped with heating, air conditioning and electricity. The homes will also have on-site restrooms, showers and 24-hour security. Service providers of the ARC will respond to non-violent mental and behavioral health service calls. With the successful execution of ARC, Redondo Beach officials hope to light the way for an expansion into other California regions who could benefit from the approach.

"We are excited to partner with Health Net to provide a mobile mental health response in collaboration with our public safety and homeless outreach teams. This service is essential in getting people the relevant care they need, at the time they need it," said Redondo Beach Council Member Paige Kaluderovic.

"Mental health care is a critical area of need for a significant number of people who are homeless, and therefore we can't meaningfully address homelessness without vastly improving our public mental health system," said Redondo Beach City Attorney Michael Webb. "We are so appreciative that Health Net has stepped up to make such an important investment in providing needed mental health services which will greatly improve the lives of those who will benefit from these additional services."

This work is part of Health Net's ongoing commitment to addressing homelessness throughout Los Angeles County. Since 2023 alone, the company has invested more than $39 million in grants to bring shelter, medical care and behavioral health services to the unhoused to improve health outcomes for the unhoused in California, including:

• A $34 million grant awarded to the County Executive Office – Homeless Initiative to support unit acquisition and activities of daily living expansion to get and keep people housed.
• A $1.5 million grant awarded to Keck School of Medicine of USC's Street Medicine program to enable street medicine workforces across the state to better serve people who are unsheltered.
• A $136,000 grant to the CA Street Medicine Collaborative to ensure the sustainability and expansion of their work to support the ongoing growth of street medicine statewide.
• Offering housing transition navigation services, housing deposits and housing tenancy and sustaining services as a key partner in the state's implementation of California Advancing and Innovating Medi-Cal and Community Supports.

Today's announcement is part of Centene's commitment to advance health equity and address drivers of health (DOH) such as access to affordable and stable housing. In May, Centene announced a $900 million multiyear partnership with McCormack Baron Salazar (MBS) to construct new affordable housing communities in eight states. The partnership is intended to address the critical lack of affordable housing impacting many economically vulnerable populations for whom Centene provides vital healthcare services.

About Health Net 
Founded in California more than 45 years ago, Health Net, a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 90,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services, employee assistance programs and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net, LLC and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.

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SOURCE Health Net

FAQ

What is the value of Health Net's grant to Redondo Beach for homeless housing and services?

Health Net has granted $1.3 million to the City of Redondo Beach for homeless housing and services, including 25 Pallet Shelter housing units and an Alternative Crisis Response (ARC) pilot program.

How many Pallet Shelter housing units will be added in Redondo Beach with the Health Net grant?

The Health Net grant will fund the purchase of 25 additional Pallet Shelter housing units for the City of Redondo Beach's program for people experiencing homelessness.

What is the Alternative Crisis Response (ARC) pilot program in Redondo Beach?

The ARC pilot program, funded by Health Net's grant, will provide wraparound services for physical and behavioral health, including trauma-informed care, crisis de-escalation, and transportation to behavioral health services for the unhoused population.

How much has Health Net (CNC) invested in homelessness initiatives in Los Angeles County since 2023?

Health Net has invested more than $39 million in grants since 2023 to bring shelter, medical care, and behavioral health services to the unhoused population in Los Angeles County.