One of West Hollywood’s contractors has found a profitable niche providing “street medicine” — a.k.a. health care and social services — to homeless individuals, according to a new report by KFF News.
Healthcare in Action operates in West Hollywood under a three-year contract awarded by the city. This contract provides the organization with $47,000 per month. The group also bills Medi-Cal, California’s Medicaid program, for the services it provides to homeless individuals.
In WeHo, Healthcare in Action’s efforts include using GPS devices to locate patients and providing essential medical and social services directly on the streets. Their work involves treating chronic conditions, managing infections, and offering support such as food and transportation. The organization’s goal is to build relationships with the homeless population to better integrate them into stable living conditions and improve overall health outcomes.
The organization also operates mobile medical units in Long Beach and San Bernardino County. Since its inception, the group has managed 77,000 diagnoses and helped place 300 people into housing. The initiative also focuses on treating chronic diseases, mental health issues, and infections, while also providing drug paraphernalia to prevent infections.
Healthcare in Action has experienced significant revenue growth, starting with $2 million in its first year, rising to $6 million in 2022, and reaching $15.4 million in 2023, according to Michael Plumb, chief financial officer of SCAN Group.
In collaboration with SCAN’s Medicare Advantage insurance plan, the organization generates revenue by tapping into substantial Medicaid funds provided by states and the federal government for treating homeless people and offering new social services like housing and food assistance.
Healthcare in Action has received $3.8 million from California’s $12 billion Medicaid initiative, CalAIM. This funding supports the hiring of social workers, doctors and providers for street medicine teams. Additionally, Healthcare in Action works with health insurers like L.A. Care and Molina Healthcare to secure housing for homeless patients, negotiate with landlords, and provide financial support such as security deposits.
The organization also collects charitable donations from hospitals and insurers, including CalOptima and its own Medicare Advantage plan, SCAN Health Plan. It partners with cities and hospitals, such as Cedars-Sinai, to provide care to patients outside hospitals and enrolls eligible homeless individuals into SCAN Health Plan, which saw its revenue grow from $3.5 billion in 2021 to $4.9 billion in 2023. As noted by Jain, the increasing visibility of homelessness highlights the urgent need for these services.
Despite its success, concerns about the commercialization of street medicine persist. Critics worry that financial motives might overshadow the social justice mission central to street medicine’s origins.
This is important work and It’s money that needs to be spent.
Medicare Disadvantage is a blight on the American Public and the Medicare system.
Otherwise, their work is commendable.
More like lack of Single Payer Universal Healthcare is the real blight on the entire country ❗
We do not have Single Payer Universal Healthcare, but we do have Medicare Disadvantage (not to be confused with original Medicare or supplemental insurance).
Kind of my point that we DON’T have Single Payer Universal Healthcare. You might want to see, Universal healthcare as pandemic preparedness: The lives and costs that could have been saved during the COVID-19 pandemic, considering that we are likely to see more and even worse Pandemics ☣ in the near future.
For as long as I have worked in philanthropy, there has been a dangerous stigma associated with pay for nonprofit workers. While many enter the field because they are driven by a higher purpose, few stick around because they can’t afford to live on good feelings alone. Rather than question successful fundraising, we should be celebrating the fact that funders see the value in this work and are investing in not only its future, but in the people that are delivering on its impact. Healthcare In Action is addressing the homeless situation as it should be addressed: on a case… Read more »
Did you notice anybody here denigrating their desire to be paid for their work?
I did not. Other than unknown “critics,” yours is a strawman argument.
I have personally watched them in action after they wete funded by weho. One of the best decisions we could have made as far as I’m concerned.
We should be celebrating the programs successes rather than anticipating the program becoming distracted by commercialization, which is tends to creep into these programs. But let’s cross that bridge when we get to it.
For now this program is treating people where they are and freeing up space at our local ER.
Thank you for making the point care given to the homeless or those in need by Healthcare in Action & others like them saves a great deal of money & Medical⚕ resources later on by keeping those in need of care from ending up in the ER⚕. 👏🏽
Great people doing really difficult and often times depressing work. Thanks.