Latitude Network congratulates Melbourne City Mission (MCM) on the announcement of its Partnership Addressing Disadvantage (PAD) contract with the Victorian State Government known as the ‘Living Learning’ program. 
 
Latitude Network supported MCM in its initial PAD application and throughout the negotiation with Government, providing advice and technical assistance across service design, financial model, negotiation and data use. We are now working with MCM to develop a live data and performance system set up to help them achieve their outcomes targets.
 
‘Living Learning’ is a new, targeted program which addresses barriers for young people who are disengaged from school and living with mental illness. MCM developed the program using its expertise in re-engaging with, and supporting, young people through their independent school, the Hester Hornbrook Academy. 
 
As lead advisors to MCM throughout the journey, we are excited to see the program announced and young people able to start entering the program from today.
 
Latitude Network was also pleased to work with leading Australian social finance experts, Sefa, who provided advice on blended capital structuring options, targeting foundation investors using their corpus and granting arm.

We can’t yet share the details of the innovative financial structure behind Living Learning. Sign up to our newsletter so we can let you know those details as soon as they are available. 
 
At a future date we will also be running a Webinar with Sefa in collaboration with Pro Bono News to talk through the details of the investment structure. Keep an eye out for the invitation.

Key program elements include - 

• ​144 participants aged 15 to 21 across Melbourne;
• Three-year program through MCM's independent school, the Hester Hornbrook Academy which has specialised campuses across Melbourne;
• Education and support for young people who are disengaged from employment, education and training and who have a mental health condition; and
• Part of the State Government's Partnerships Addressing Disadvantage social impact investment program.

​See the Victorian Government's Press Release here.

iiSOCIAL ISSUE 

Each year, large numbers of people in the mental health system struggle to secure and maintain housing and fall into long-term homelessness. This has significant consequences for their long-term health & wellbeing and puts a high burden on the state’s housing and health systems.

CLIENT CHALLENGE  

Wellways, a national provider of mental health services and leader in sub-acute mental health care, developed the Doorway approach. Doorway supports clients out of a clinical mental health service and into a home by leveraging Australia’s second-largest housing market - private rentals. Doorway does the heavy-lifting to make sure that people engage with and secure a long-term tenancy in the private rental market. This radically increases the supply of housing available to this client group, whilst normalising the process of maintaining housing in the community - not in the public housing system. Wellways has iterated and proven the Doorway model over nearly a decade and an academic review demonstrates its efficacy. 

However, the challenge for Wellways was that despite Doorway having demonstrated value and impact, there were not any established channels or processes for Wellways to proactively approach Government about continuing this program beyond its pilot. 

THE ROLE LATITUDE NETWORK PLAYED 

Latitude Network worked closely with Wellways to strengthen the proposition as an outcomes-based program and transform Doorway into a convincing proactive funding approach to Government. 

We undertook a deep-dive into the Doorway segmentation data to see for whom it worked best and under what circumstances. We then advised Wellways on how the program could be dialled-up in these areas to create a more compelling investment case for funders. We used a multi-year, data-driven analysis of client outcomes linked through to the program logic and developed a discounted cash flow financial model that reflects the 10-year cost-savings to Government in Net Present Value terms. 

THE TRANSFORMATION / IMPACT

The process of reframing a proven program as an outcomes-oriented program has helped enhance Wellways’ business capacity and confidence to deliver on its promises to clients. It can now target clear and specific outcomes to be delivered with confidence.
 
The Doorway transformation has also created a template for the future, enabling Wellways to apply this methodology to other successful programs. Most importantly, perhaps, the process has reinforced Wellways’ position as a service provider who wants to continuously do better despite traditional block funding mechanisms. Through Doorway, the organisation is now ready for the future world of outcomes-based funding.