By Tim Bonfield
The Cincinnati Enquirer

HEALTH FOUNDATION

Formed: 1997, from the $250 million sale of ChoiceCare to Humana inc. Endowment: $223 million, down from more than $250 million in 1997 because of investment losses during the recent economic doldrums. Director: Donald Hoffman, who was paid $240,000 last year. Staff: 22 full-time Total administrative expenses: $795,000, or about 7 percent of $11.4 million spent last year. Year-to-year grants awarded: 1998: $14.1 million 1999: $11.1 million 2000: $12.1 million 2001: $12.1 million 2002: $11.4 million

In its five years of existence, the Health Foundation of Greater Cincinnati has disbursed $60 million in the form of 381 competitive grants that have helped tens of thousands of people.

Created after the $250 million sale in 1997 of the ChoiceCare HMO to Humana Inc., the Health Foundation of Greater Cincinnati has emerged as one of Cincinnati's biggest, newest and boldest charities.

Agencies working in 20 counties surrounding Cincinnati have used Health Foundation money to:

• Launch 18 school-based health care centers from Newport, Ky., to the Northwest Local School District.

• Provide low-cost prescription drugs for more than 13,000 low-income seniors

• Offer more than $7 million worth of over-the-counter medications and health supplies to needy people through the FreeStore/FoodBank.

• Launch drug court projects in Butler and Hamilton counties that seek to ease public spending on prisons by providing addiction treatment.

• Give more than 500 Northern Kentucky residents with mental illness access to new support groups, housing and job assistance.

• Help more than 1,000 teens a year get drug and alcohol addiction treatment through eight new or expanded programs.

When it formed, the Health Foundation was the sixth "conversion" charity to be established in the United States, all of which were formed by switching a non-profit insurer into a for-profit company. As such, its progress has been closely followed by other charitable foundations and by policymakers at the state and federal levels.

"These health conversion foundations are really a new force nationally," said Mike Hogan, director of the Ohio Department of Mental Health. "I think the Health Foundation of Greater Cincinnati has been one of the more effective of these organizations around the country."

On Thursday , the Norwood-based foundation's 22-member staff and supporters celebrated its first five years.

The foundation existed in a smaller form since the late 1970s as the charity arm of the ChoiceCare HMO. It became a huge, independent organization in 1997, when its endowment was boosted by the entire proceeds of the sale of ChoiceCare to Humana Inc.

The foundation's board of directors picked four unpopular and often under-funded topics: severe mental illness, substance abuse, school-based health services and care for the poor.

"A lot of people told us you'll never make an impact on that stuff. It's almost a lost cause," said Donald Hoffman, president and chief executive of the foundation. "We're biting the elephant off one piece at a time. We could have doubled what we have invested in these four areas and still not meet the need."

Making connections

The foundation is notable for understanding the connections between mental illness and substance abuse and other issues, Hogan said.

"These aren't popular issues, but they are bedrock," Hogan said.

Last week, even the foundation's leaders were surprised to find out from a philanthropy trade group that they have become the nation's third-largest private funder of substance abuse services.

"That doesn't say much, except to show how little focus there has been. We're only putting a few million dollars into this. And its still nowhere near enough," Hoffman said.

Showing impact

School-based health centers are one area where people can clearly see the impact of the Health Foundation.

Three public schools in Newport, Ky., were among the first eight districts where the Health Foundation paid to launch school-based health centers.

Typically, the programs feature a nurse capable of diagnosing common illnesses and writing prescriptions under a doctor's supervision. Many also involve part-time services from a variety of social workers, counselors, pharmacists and other professionals.

In Newport, the middle school has a full-fledged clinic. Hundreds of students a year get support for chronic illnesses, sports physicals, vaccinations, and referrals to agencies.

"It allows more children to stay in school, and when we have to send a child home, to come back quicker," said Beth Lange, Newport's program coordinator.

The foundation expects to continue working in its four focus areas.

"This is not easy work," Hoffman said. "It could be another five or 10 years before we can see the impact of some of these initiatives. But I'm very proud of what we're doing."

E-mail tbonfield@enquirer.com