One notable aspect of the partnerships studied is that almost all of them developed their models de novo. Almost none of the CLT/ROC partnerships were aware of the others and while later worker cooperative partnerships knew of the earlier ones, the contexts and approaches were sufficiently different to require navigating relatively unchartered territory.
A systematic assessment of CLT/ROC and worker cooperative partnerships provides what none of these partnerships had: a roadmap. This section describes key aspects of the roadmap (summarized in Fig. 1), derived from the insights of partnership participants and adapted for the current context.
Motivation
Changes wrought by the COVID pandemic have created additional motivations for health systems to partner with CWB initiatives. Skyrocketing housing prices have made both homeownership and renting increasingly unaffordable across the country, and the expiration of eviction and foreclosure moratoria have left millions vulnerable to displacement.(16) COVID also exposed the vulnerability of health system supply chains, highlighting the need for more local and reliable suppliers.(17)
This new context requires a re-evaluation of the community’s evolving needs and an evaluation of where community and health system needs align to identify win-win solutions. As several interviewees noted, the Community Health Needs Assessments required of all non-profit health systems provided a key tool for identifying priority areas for community partnerships. Data collected by health systems on patients’ social needs can also help target areas of greatest need.
Overall, COVID-related changes have created potential win-wins for health system partnerships with CLTs/ROCs and worker cooperatives. The permanent affordability and stability of CLTs/ROCs provide a unique remedy to the rampant displacement impacting not only health systems’ patients but also their staff. In addition, health system partnerships with worker cooperatives can increase local supply chain resilience while also supporting community economic development and individual wealth building.
Initiation
The past several years have also witnessed a proliferation of CWB models and growing evidence of their impacts. The number of worker cooperatives in the US grew 30% between 2019 and 2021,(14) while ROC USA – the largest national network of resident-owned communities – has more than doubled in size over the past decade.(10) Several recent analyses have further elaborated the economic benefits associated with these models.(6, 18–21) For health systems, this means the initiation phase is now supported by a broader network of potential partners and a deeper pool of accumulated experience.
These new resources support the crucial initiation tasks of obtaining health system buy-in and conducting a landscape analysis that identifies internal capacities and external partners. As emphasized in the interviews, securing health system buy-in requires both education and de-risking. The growth in CWB models has made it easier to conduct site visits and meet with CWB organizations that fit the health system’s priorities and context. Health systems can de-risk their investments by offering incremental investments that include both grants and loans and by participating in the boards of CWB organizations, a practice well-established among the existing partnerships.
An effective initiation phase also requires health systems to conduct a landscape analysis that takes stock of their internal resources and external partners. Internal resources include grants, loans, and purchasing contracts that could potentially be used to support a CWB partnership. Key external partners include CWB organizations and support organizations such as community development financial institutions, workforce developers, and technical assistance providers.
Implementation
Because the partnerships interviewed were diverse in their locations and approaches, there are now several established paths health systems can choose based on their internal capacities and external partners. Based on their landscape analysis, health systems can consider to what extent to play a contributor, convener, or capacity-builder role with CLTs/ROCs. For CLTs ready to purchase properties, being a contributor as a first investor could play a catalytic role in bringing other funders to the table. The health system could also play a convening role by promoting CLTs/ROCs as a strategy among local housing providers and funders. If there are no established CLTs/ROCs locally, the health system can play a capacity-building role by contributing grant funds for a feasibility study or strategic planning for a potential CLT/ROC host organization.
Health systems can also use their landscape analysis to determine whether to pursue a worker cooperative partnership strategy that is outside-in or inside-out. They can take an outside-in approach by providing a purchasing contract to a new or established cooperative. Interviewees noted the crucial role that health system purchasing contracts can play in developing new worker cooperatives, which can also increase the resilience of the system’s local supply chain. Alternatively, health systems can pursue an inside-out strategy where they identify their existing suppliers who may be interested in retiring and/or selling their business to their workers as a worker cooperative. This approach may be preferable in areas where there is already a satisfactory supplier interested in converting to a worker cooperative.
Evaluation
Metrics to assess the impacts of economic development interventions are increasingly being developed and can be useful for evaluating CLT, ROC, and worker cooperative partnerships.(22) These metrics vary based on the time horizon (short-term vs long-term) and their scope of analysis (individual vs community vs equity). Short-term outcome metrics include individual measures of wealth building, wages, and benefits; community measures of vacancy, homeownership, and employment rates; and equity measures assessing the race, class, and gender make-up of CWB program participants and local neighborhoods. Long-term outcome metrics include individual measures of wealth-building, job stability, and housing stability; community measures of changes in social vulnerability of impacted neighborhoods; and equity measures that assess changes in neighborhood and CWB program demographics. While these metrics cannot completely isolate program effects from other factors influencing outcomes, they provide a more comprehensive picture of the partnerships’ impacts across time and population that can guide future program design.
Limitations and Directions for Future Research
This analysis has several limitations. Our sample did not include CWB partnerships that were attempted but did not lead to health system investments, and there are likely important lessons to learn from these unsuccessful attempts not captured in our analysis. Also, given that our interviewees were often reporting about past events, their responses may be subject to recall bias. In addition, many of the programs had not yet begun the evaluation phase, especially around long-term outcomes, so their responses in this area may be more reflective of plans and aspirations than actual practice. Finally, while the health systems interviewed represent significant diversity in terms of geography, community demographics, and partner landscape, it is unclear the extent to which these findings can be generalized to settings such as for-profit health systems or small community hospitals. Additional studies including unsuccessful partnerships, data collection concurrent with each stage of the partnership, evaluation outcome data, or for-profit and small community hospitals could help provide a clearer picture of the challenges, impacts, and applicability of these types of partnerships.
Public Health Implications
Community wealth building strategies like CLTs, ROCs, and worker cooperatives provide health systems an opportunity to transform their housing investments and purchasing practices in ways that have impact further upstream – promoting housing and job security in their communities. One-off housing or income supports, while important, cannot do this.
Importantly, the benefits of these models aren’t limited to the CLT/ROC residents or the worker cooperative members alone. By building wealth and stability, these models promote economic resilience among entire communities and prevent displacement. For example, foreclosures produce well-documented harms to neighborhoods and community health,(23) and CLTs have been shown to reduce foreclosures by as much as 90%.(7) Beyond protection from foreclosures, CLTs have also been shown to reduce gentrification-related displacement at the neighborhood level.(20) Similarly, worker cooperatives provide stable employment and local spending that can promote broader community economic development.(24) Regions with a high density of worker cooperatives have been especially resilient to recessions, laying off less than one percent of their workforce while comparable regions experienced mass layoffs during the Great Recession.(25) Given their participant- and community-level impacts, scaling up these CWB models could have immense public health benefits.
It is important to note that scaling up these models is not solely or even primarily the work of health systems. Other private and public sector institutions have major roles to play. But the case studies above suggest two important aspects of health systems’ role in supporting CWB models.
First, health systems are uniquely situated to pilot and grow early versions of these models. Health systems are major economic engines purchasing over $340 billion in goods and services yearly and investing over $500 billion(26), while being located in some of the most disinvested urban and rural communities in the country.(27) Their own housing and supply chain needs means they have some incentive to contribute to these CWB efforts, even if there is not a direct return on investment.
Second, the cases above suggest these models do not displace additional investment but call it forward. Health systems are understandably concerned that investments in social determinants of health will lead public entities and other funders to withdraw from those sectors. However, CWB partnerships have had the opposite effect. Rather than displacing public investment, CLTs/ROCs and worker cooperatives attract it by increasing its impact. Municipalities are willing to invest in a worker cooperative laundry facility if health systems have agreed to buy from them.(28, 29) Cities and counties are willing to transfer housing funds and abandoned properties to established CLTs because they have shown that they can provide stable, quality housing for low- and moderate-income residents(30, 31)