UnitedHealthcare invested $5 million in Volunteers of America’s Southwest California affiliate to help the organization provide drug and alcohol rehabilitation services to San Diego-area residents.
UnitedHealthcare, which offers health benefits to nearly 3 million Californians, purchased Volunteers of America’s tax-exempt revenue bonds through the California Health Care Investment Program. The program gives California health care entities access to capital at rates that are highly competitive with those of conventional financing.
Given the dollar size of the bond issue, Volunteers of America also qualified for a cost of issuance subsidy of about $511,000, which covered nearly the entire amount of the organization’s bond issuance costs. The cost of issuance was subsidized by the health and well-being company’s Capital Access Small Issuance Program.
The California Health Care Investment Program is a 20-year, $200 million commitment to health care organizations that provide services to underserved, low-income and underinsured communities and populations throughout the Golden State.
Volunteers of America’s Southwest California office is using the bonds’ proceeds to acquire, renovate and equip the new South Bay Treatment and Rehabilitation Center. The center’s two buildings will operate as a residential facility for treatment and recovery of alcohol and drug addiction.
Founded in 1896, Volunteers of America is a nonprofit health and human services organization that assists less fortunate individuals and families and provides them with the tools to improve their quality of life. The purpose of its programs is to strengthen the social, spiritual, psychological and physical well being of those they serve. Primary service areas are education and social development, treatment and rehabilitation, aging and baby boomer responsiveness, and housing.
“We are very excited about UnitedHealthcare’s investment in our program and mission. These funds will help Volunteers of America Southwest California create a new state-of-the-art facility to treat people affected by substance abuse in our region,” said Jim Miller, CFO, Volunteers of America Southwest California.
“Organizations like Volunteers of America of Southwest California do an exceptional job of helping serve some of our most vulnerable communities,” said U.S. Congressman Bob Filner. “These funds will go a long way to making sure people are able to get the treatment they need.”
“UnitedHealthcare is committed to supporting organizations that help ensure Californians have access to quality care,” said Steve Nelson, West Region CEO, UnitedHealthcare Employer & Individual. “Volunteers of America plays a vital role in meeting this community’s needs to help those suffering with drug and alcohol abuse. We believe it is essential that medically underserved residents in the San Diego area have access to this important health care resource in their community.”
UnitedHealthcare offers health benefits, including commercial and Medicare health plans, to more than 2.8 million Californians, and partners with about 50,000 physicians across the state.
UnitedHealthcare is dedicated to helping people nationwide live healthier lives by simplifying the health care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. The company offers the full spectrum of health benefit programs for individuals, employers and Medicare and Medicaid beneficiaries, and contracts directly with more than 650,000 physicians and care professionals and 5,000 hospitals nationwide. UnitedHealthcare serves more than 38 million people and is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune 50 health and well-being company.