Building Community Wealth
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1 Building Community Wealth Leveraging Anchor Institutions for Local Impact David Zuckerman Manager, Healthcare Engagement Anchor Institution Initiative National Academies of Sciences Committee on Community-based Solutions to Promote Health Equity in the U.S. March 7, 2016 Washington, DC
2 Economic Trends: Growing Wealth Inequality U.S. Wealth (Net Worth in Trillions) Top 400 individuals Bottom 185 million Sources Edward N. Wolff, Recent Trends in Household Wealth in the United States, Levy Economics Institute, March 2010; Politifact, Michael Moore Says 400 Americans Have More Wealth than Half of All Americans Combined, Forbes, September 16, 2013.
3 Sources Kasey Wiedrich, Lebaron Sims, Jr., Holden Weisman, Solana Rice and Jennifer Brooks, 2016 Assets and Opportunity Scorecard. CFED. Jan 2016
4 Sources Kasey Wiedrich, Lebaron Sims, Jr., Holden Weisman, Solana Rice and Jennifer Brooks, 2016 Assets and Opportunity Scorecard. CFED. Jan 2016
5 Place Matters Source: Life expectancy data calculated by Cuyahoga County Board of Health and the Alameda County Health Department
6 Two Approaches to Economic Development
7 Two Approaches to Economic Development
8
9 Substantial Community-Based Assets
10 Benefits of Inclusive Ownership
11 Benefits of Inclusive Ownership
12
13 What are Anchor Institutions? Sticky capital Economic engine: employer and purchaser Vested interest in surrounding communities Typically nonprofit or public Types of Anchors
14 Hospital Economic Impact Employment 5.5 million+ Annual Expenditures Annual Procurement Investment Portfolios/Endowment s $780 billion $342 billion $500 billion+
15 Anchor Sources of Economic Impact Procurement/supply chain Hiring & employment policies Training & staff advancement Investment Real estate Construction Technical assistance & business incubation
16 Rethinking How We Do Business Community and healthcare leaders are discovering that hospitals can help heal entire cities through economic development healthcare systems can create jobs and wealth And we can earn the trust and goodwill of our neighbors. Tom Zenty, CEO, University Hospitals System, May 2013
17 University Hospitals (Cleveland, OH) Vision 2010: $1.2 billion construction and procurement over 5-year period; voluntarily set (and exceeded) goals for local spending, MWBEs
18 Dignity Health (CA, NV, & AZ) Community Investment Program: $80 million loan fund; low-interest loans patient lender for low-income communities
19 Mayo Clinic (Rochester, MN) First Homes: community land trust to preserve housing affordability, Minnesota s largest community-based assisted-housing program
20 Hopkins Local Build. Hire. Buy. Johns Hopkins Health System (Baltimore, Maryland) HopkinsLocal: Embraces our role as an economic engine to create lasting opportunities and firm commitment to build, hire and buy local; public goals.
21 University of Chicago Medicine (Chicago, Illinois) UChicagoLocal: Catalyst for Chicago Anchors for a Strong Economy (CASE), comprising 15 anchors, focused on local business development and local hire
22 University Hospitals/Cleveland Clinic (Cleveland, OH) Evergreen Cooperative Initiative: green, employee-owned businesses linked to hospital and university procurement
23 The Cleveland Model
24
25 community-wealth.org/indicators
26 Moving from Contribution to Accountability Do Good Things Assure access Support community organizations Educate Make an Impact Address determinants of health in physical, social, natural environments Measure impacts Be Accountable for All Our Impacts Understand our social, ecological and economic footprint, and its impact on community health Leverage all our assets What Counts Making It Count Being Accountable
27 Applying All KP Assets for Health We can leverage many of our activities in key functional areas to understand the economic, environmental and social impacts. Procurement & Supply Health Care Services Treasury Environmental Stewardship National Facility Services Total Health Impact Technology Human Resources Communications Research Government Relations Labor Mgmt Partnership Community Benefit
28 Where s It Headed Design for Catalyzing the New Paradigm Add community wealth drivers to existing work Shift the use of incentives Support inclusively owned enterprises Encourage the flow of local capital Encourage inclusive ownership conversions Encourage adoption of an anchor mission Innovate in workforce development Use land trusts and land banks to keep property in community control Create a new city office
29 Lessons Learned Big picture alignment: 1) keeping people healthy, 2) economic engine, and 3) community and local government pressure Equity and inclusion require intention Culture change: leadership AND middle manager buy-in What gets measured gets done data (dashboard) and evaluation Funding helps convene but relationships and new normals endure long after There is no failure, only feedback learn and revise
30 Thank you! For more information: David Zuckerman Manager, Healthcare Engagement Democracy Collaborative
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