at the launch event
In a landmark move for the healthcare sector, a groundbreaking partnership has been formed between Macmillan Cancer Support, non-profit enterprise Social Finance and West Herts Teaching Hospitals NHS Trust.
This pioneering collaboration leverages around £10m of social investment to shift care from hospitals into the community, aiming to create a sustainable, scalable model for neighbourhood health that could be replicated across the country.
This partnership is the first of its kind in the UK and supports the government’s 10-Year Plan for the NHS using a novel social investment model to proactively tackle the growing demand for care. Current funding models often trap patients in a cycle of reactive, hospital-based treatment by prioritising short-term spending.
In contrast, this new initiative focuses on long-term, preventative care, providing a robust solution to the challenges faced by an aging population with increasingly complex health needs, including those with cancer. At the heart of this partnership is the Neighbourhood Transformation Fund, which will focus on supporting older people with multiple health conditions in South and West Hertfordshire.
The initiative will:
- Establish a Proactive Anticipatory Care Model: Delivered by Central London Community Healthcare NHS Trust, multi-disciplinary teams will provide holistic, person-centred care for up to 2,000 older people across four neighbourhoods.
- Utilise a Repayable Grant Mechanism also known as a non-profit social investment model: A key innovation of this is a repayable grant that ties the NHS to paying for the intervention only when it demonstrably reduces acute hospital spending. This de-risks the investment and ensures funds are tied to positive patient outcomes.
- Create a "Neighbourhood Integrator": A dedicated, locally owned investment vehicle will be established as a Community Interest Company. This allows for the benefits of reduced hospital spending to be reinvested directly back into neighbourhood teams and enables the partnership to attract additional investment from other third-party funders.
- Fund an "Anchor Offer": this programme, initially funded by a non-repayable grant from Macmillan, will provide shared infrastructure, small grants for local grassroots organisations, and opportunities for peer-to-peer learning.
This model not only binds the system to shifting resources from hospital-based treatment to community-based prevention but also offers a multi-year investment framework that reflects the time needed for these services to have a real impact.
This collaborative approach, which harnesses investment from outside the NHS, is set to reshape health systems from within and empower local VCFSE (Voluntary, Community, Faith and Social Enterprise) partners. The initiative is part of a wider set of activities led by the South & West Hertfordshire Health & Care Partnership, which brings together NHS, Local Authority and VCSFE to design, deliver and improve services for local residents.
Matthew Coats, Chief Executive of West Hertfordshire Teaching Hospitals NHS Trust, said: “This has the potential to be a game-changer for how we care for elderly patients with multiple conditions. We want to support people to stay in their own homes by providing care in a smarter, more proactive way so we provide the longer-term support people need. Hospitals can only ever be part of the solution. By harnessing the collective expertise, support and local know-how of a wide range of partners and community groups, we can provide a truly tailored, joined up and effective service for people in their home and within their local area.
“This innovative financial partnership allows us to invest in proactive, preventative services in a way that is financially responsible and sustainable for the long term – but also one which is directly linked to results through lower hospital admissions.”
Gemma Peters, Chief Executive of Macmillan Cancer Support, added: “The challenges facing the healthcare system are complex and widespread, and no organisation can solve them alone. The Government’s neighbourhood health agenda is an important opportunity for us to work together differently and do better. At Macmillan we’re here to create change for people with cancer.
“This means focusing on putting the people who are having the worst experiences at the heart of the solutions being created. We’re incredibly proud to be part of this partnership in West Hertfordshire, where we’re using innovative ways of funding healthcare projects to empower people in the local community to create the services they need. Together we're building a more equitable and effective healthcare system from the ground up. We’re creating a blueprint for change that we can roll out across healthcare services."
Caroline Gadd, Chief Executive, Social Finance, said: "For too long, short-term funding has been a major barrier to transforming our health system This repayable grant model, also known as a non-profit social investment model, provides the long-term, outcome-driven investment needed to build robust community-based services that truly put people first. It's a scalable and sustainable approach that we believe holds the key to unlocking a healthier future for communities across the UK. 15 years after Social Finance launched the first ever Social Impact Bond (SIB), this partnership marks a significant milestone in the evolution of sustainable healthcare funding and delivery, providing a blueprint for a more effective, patient-centred, and integrated future.”
For more information, please contact Nick Foley, Director of Communications at West Herts NHS Trust, on 07929 094922, nick.
Notes to editors
About Macmillan Cancer Support
Macmillan Cancer Support has spent more than 100 years helping people living with cancer. We know that cancer can disrupt your whole life. And it can be made worse simply because of who you are and where you live. But we’re here to change that. The number of people diagnosed with cancer is growing, and every one of them needs the best support to meet their unique needs. That's why we'll do whatever it takes to help everyone living with cancer across the UK get the support they need right now and transform cancer care for everyone who will be diagnosed in the future.
About Social Finance.
Social Finance is a non-profit organisation that helps our partners design, fund and scale solutions to complex and enduring social issues in the UK and globally. We launched the world’s first Social Impact Bond in 2010 and since 2015 we have partnered with Macmillan Cancer Support to pioneer social investment models for the health and social care sector, delivering lasting and widespread change that improves the lives of people and communities. We are FCA-regulated and help with mobilising finance, strategy, design, data, and building partnerships, in a human-centred way. We partner with local and national governments, commissioners, service providers, such as charities, as well as socially-motivated investors, funders, international donors and philanthropic organisation.
About West Hertfordshire Teaching Hospitals NHS Trust
West Hertfordshire Teaching Hospitals NHS Trust provides healthcare services to over 600,000 people living in West Hertfordshire and the surrounding areas. We see nearly a million patients every year and employ around 5,800 people, making the Trust one of the largest employers in the area. We operate Watford General Hospital, Hemel Hempstead Hospital and St Albans City Hospital, and have ambitious plans to redevelop our hospital sites for our patients and staff.