Update on COVID-19 and the Resolve SBB
Resolve Social Benefit Bond
Investor update, 1 April 2020
Above: An aspiring musician in the Resolve Program.
Dear Investor,
The outbreak of coronavirus (COVID-19) is a rapidly evolving situation to which Australia and the rest of the world is having to adapt and adjust. The challenge is that life continues and it is now, more than ever, that the most vulnerable people in our communities need support to navigate life’s uncertainties.
Flourish Australia operates the Resolve Program, and has over 60 years’ experience in providing recovery-focused, trauma informed support for people with complex mental health living in the community. In these unprecedented times, their commitment to supporting people has not changed.
Both Local Health Districts continue to work collaboratively with Flourish Australia to ensure participants have access to the program and ongoing clinical support. Adaptations to the way clinical and psychosocial support services are delivered have been necessary to ensure workforce and community care practices align with current guidance from the Mental Health Coordination Council.
This investor update outlines how the Resolve Program is responding to COVID-19, and the potential impact on the Resolve SBB.
COVID-19 Impact
Like all social service providers, Flourish Australia are having to deal with many challenges including adapting the way services are delivered to ensure the safety of staff and participants. Multiple strategies have been put in place for the Resolve Program in response to COVID-19. These include reducing face to face support, suspending face-to-face group programs and reducing operating hours at the Resolve centres. As face-to-face interactions are reduced, the Resolve team are shifting to providing support using online and phone-based mediums for one-to-one and group supports.
The Resolve centres in Orange and Cranebrook are still available for overnight stays that are considered essential, however preventative measures including hygiene measures and safe distancing have been put in place and contingency plans are being developed in the event that overnight stays are no longer possible. Importantly, the peer-operated warm line is still available for participants.
Staff are being provided access to technology and equipment to work flexibly and remotely, where possible, including mobile phones, laptops and iPads. There have been changes to staff rosters to contain staff movements and limit access to sites. Staff are undergoing additional training to increase their understanding of infection control and to strengthen their skills in remotely supporting participants.
Additional supports are being put in place to identify and support participants considered to be most vulnerable, including activities to prepare for the need to self-isolate in the event of infection or exposure to COVID-19. There are increased communications, including flyers and posters at the centres to educate staff and participants about the virus and good hygiene practices.
It is expected that COVID-19 will impact on overall utilisation of health services and in turn, the measure used to calculate outcome payments under the Resolve SBB. This is because there is likely to be an increase in hospital admissions for participants displaying COVID-19 symptoms or who are confirmed to have contracted the virus. Participants may also experience increased levels of distress and anxiety associated with their mental health issue.
The Joint Working Group will consider the implications of COVID-19 on outcomes measurement and will seek to ensure that the utilisation of health services for COVID-19 related reasons does not unduly impact on outcome payments made to the Resolve SBB Trust or investor returns.
Current status of the Resolve SBB
The Year 2 results for the Resolve SBB have been extracted and are in the process of being independently certified. The results will be communicated in the 2019 Annual Report, expected to be released in early April. The annual fixed coupon of 2% for Year 2 will be made to Investors on or around 31 March 2020.
These are unprecedented circumstances and the situation is evolving rapidly. We will provide you with further updates as new information is available over the coming weeks and months.
Please feel free to contact us at resolvesbb@socialventures.com.au if you have any further questions.
Elyse, Casey and Patrick
Impact Investing, Social Ventures Australia
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