TheMicroHIBWhitePaper1.0

Infinite8 Institute, L3C
The design and finance of social impact systems
Sheik Khalifa Medical City, Abu Dhabi, U.A.E.

Ean Garrett, J.D. is the Chief InnovationOfficer of
Infinite 8 Institute, L3C, a low-profit limited liability
company.
Acknowledgements:
We would like to thank global staffand administrationwithin the medical field for their hard
work and dedicationin such a demandingand intricate field.

CONTENTS
INTRODUCTION………………………………………………………………………………………………....i
WHAT IS A HEALTH IMPACT BOND……………………………………………………………………….1
RISING HEALTHCARE COSTS………………………………………………………………………………...1
A HYPOTHETICAL CASE STUDY: HOWARD UNIVERSITY HOSPITAL ……….…………………....2
Summary…………………………………………………………………………………………………………………………..3
Objectives…………………………………………………………………………………………………………………………3
Program Plan…………………………………………………………………………………………..................................3
Financials………………………………………………………………………………………………...................................4
Recruitment……………………………………………………………………………………………………………………...5
ROLE OF MAJOR DEPRESSIVE DISORDER (MDD) in PATIENTS WITH CARDIOVASCULAR
DISEASE…………………………………………………………………………………………………………….5
Heart Disease & Myocardial Infarctions……………………………..…………………………………………….5
Pneumonia………………………………………………………………………………………………………………….…….5
LOW COST STRESS-REDUCTION THERAPIES…………………………………………………………….7
Smile Therapy…………………………………………………………………………………………………………………...7
Mindfulness Meditation……………………………….…………………………………………………………………...7
Non-cognitive Development Therapy………………………………….………………………………………...…8
FEASIBILITY………………………………………………………………………………………………………..8
DATA COLLECTION & ANALYSIS……………………………………………………………………………8
WEARABLE TECHNOLOGY…………………………………………………………………………………….9
CONTRACT FORMATION………………………………………………………………………………………9
STANDARD vs. COMMUNITY-BASED METRICS…………………………………………………………9
RELEVANT LEGISLATION………………………………..…………………………………………....……....9
U.S. FEDERAL TAX INCENTIVES……………………………….……………………………………….......10

i.
INTRODUCTION BY EAN GARRETT, J.D.
ChiefExecutiveOfficer, Infinite 8 Institute, L3C
There are often many formalities and procedures as well as other hierarchy of thought that the
medical field has traditionally followed as a business model. With a new century, arrives an
urgent need to transform the way we thinkabout providingservices in the healthcare sector.In
a field full of specialists,the heavyintegration ofcross-sector disciplines in collectiveimpact
efforts, must also lead to the adoptionofexternal viewpoints bythe medical field and constant
adaptation and learning.
The Micro-Health Impact Bond (Micro-HIB) is not the sole answer but it is a tool that has the
potential to help get us there. There is a huge burden on the healthcare system from
widespread issues,such as Depression,Heart Disease, and Pneumonia,which form a large sum
of healthcare related costs. As a result there is a larger pressure on the healthcare system with
a smaller set of resources. In such an environment, continuedexistence relies on the ability to
navigate the current healthcare landscape, which is plush with uncertainty.
However, the strategic implementation ofinitiatives and the efficient utilizationofresources in
the form of Social Impact Bonds (SIBs), provides a unique opportunityto pilot innovative
healthcare products and services that may provide potentialsystematicsolutions.The Micro-
Health Impact Bond (Micro-HIB), is a further step in that direction. The aim of the model is to
provide creativefinancingfor the design and implementation ofinnovativeand prototypical
global healthcare initiatives.The model brings outcomes to the forefront of the healthcare
paradigm, and the consequence is puttingthe patient backat the center of everything.
The Micro-HIB, was created specificallyto address the ailingissues at the forefront of hefty
costs associated with patient readmissions and emergency admissions.However, we expect the
model to widelyexpand in the coming years to include many other health subjects. In the
private sector, if a client base continuallyreturned with a similar problem unsolved there would
be a strong effort to address the issue. When a person’s very existence and well-beingare the
issue, an even more valiant effort should be made to effectively and efficientlyaddress a
customer’s needs.
Over the past year we have communicated with healthcare professionals and researched the
finest healthcare systems in the world. Every communityand population is faced with a unique
set of challenges,both measurable and immeasurable.The role and potential ofvarious
technologies in the future of medical science cannot be denied,such as wearable technologies.
The Micro-SIB provides a replicable frameworkfor healthcare professionals from which to
launch the next life-savingtechnologyor methodology. We hope that this will be the start of a
much larger conversation concerningwhere we can go from here.
Ean Garrett,J.D.
ChiefInnovation Officer,Infinite 8 Institute, L3C

pg. 1
WHAT IS A HEALTH IMPACT BOND?
Social Impact Bond’s or (SIBs), which are debt or
equity instruments – sometimes referred to as
“pay-for-success,” “social innovation financing”
or “outcome-based financing arrangements” –
through which third-party investors take on the
financial risk associated with expanding social
programs.1
The first Health Impact Bond (HIB),
was implemented on May 2013, in Fresno,
California, a city with one of the nation’s
highest asthma rates (20%).2
The California Endowment awarded Social
Finance and Collective Health $660,000 in grant
funding to launch an HIB aimed at improving
the health of low-income children with asthma.
Savings accrued to the state, who benefit from
the reduced costs associated with the
emergency treatment of childhood asthma.
RISING HEALTHCARE COSTS
In the first quarter of 2015, health spending was
7.3% higher in the previous year, and hospital
spending increased 9.2%. Many of the gains are
credited to increase healthcare system usage as
a result of the Affordable Care Act (ACA).
Likewise, the number of days people spent in
the hospital also rose as well.3 Also, by 2022,
1
The Center for American Progress describes SIBs as:
an innovativefinancial arrangement between oneor
moregovernment agencies and an external
organization—sometimes called an “intermediary” –
that can either bea nonprofit or for-profit entity.
See, e.g., Kristina Costa et al., Frequently Asked
Questions: Social ImpactBonds, CTR. FOR AM.
PROGRESS, 3 http//:www.americanprogress.org/wp-
content/uploads/2012/12/FAQSocialImpactBonds-
1.pdf (last visited on Aug. 7, 2015).
2
Kennedy, K. (2013). Social Finance: The California
Endowment Awards Grantto Social Finance and
Collective Health. Retrieved from
http://tcenews.calendow.org/releases/social-
finance-the-california-endowment-awards-grant-to-
social-finance-and-collective-health
the ACA is projected to reduce the number of
uninsured people by 30 million, add
approximately 0.1 percentage-point to average
annual health spending growth over the full
projection period, and increase cumulative
health spending by roughly $621 billion.
Furthermore, health spending is also projected
to be 19.9% of the DGP by 2022.4
With the steady increase in healthcare
expenditures over the next decade, costs must
be curbed in order to relieve pressure on the
system. The area where costs have been
admitted to be the highest among the Federal
government, as well as the industry at-large,
concerns cardiovascular diseases, more
specifically heart disease, myocardial
infarctions, and pneumonia. In 2013, 2,225
hospitals were fined up to 1% Medicare
reimbursements for too many readmissions
related to heart attacks, heart failure
(myocardial infarctions), and pneumonia. The
maximum penalty will reach up to 3% in 2015
for non-compliant health institutions.5
3
Altman, Drew (2015). TheNew York Times. New
Evidence Healthcare Spendingis Growing Faster
Again. Retrieved from
http://blogs.wsj.com/washwire/2015/06/11/new-
evidence-health-spending-is-growing-faster-again/
4
Centers for Medicare& Medicaid Services. Office of
theActuary, National Statistics Group(2012).
National Health Expenditures Projections2012-2022.
Retrieved from https://www.cms.gov/research-
statistics-data-and-systems/statistics-trends-and-
reports/nationalhealthexpenddata/downloads/proj2
012.pdf
5
Daily Briefing (2013). CMS: The 2,225hospitalsthat
will pay readmissions penalties next year. The
Advisory Board Company. Retrieved from
https://www.advisory.com/daily-
briefing/2013/08/05/cms-2225-hospitals-will-pay-
readmissions-penalties-next-year

pg. 2
A HYPOTHETICAL CASE STUDY:
HOWARD UNIVERSITY HOSPITAL
The purpose of the following hypothetical is to
stimulate conversation and scholarly debate
relating to the pressing needs of the healthcare
industry across the globe, especially institutions
servicing dynamic populations and communities
with unique needs, similar to a metropolitan
hospital, such as Howard University Hospital.
Founded in 1862, the century-old hospital
services the largest population of impoverished
patients in the District of Columbia.6
The
scenario and programmatic model, while
fictitious, utilize existing scientific
methodologies and publicly available
quantitative data with real cost-savings. The
6
Kaiser Health News (2013). Panel says Medicare
unfairly penalizes hospitalsserving thepoor.
Retrieved from
hypothetical provides healthcare practitioners,
government, and the private sector a tangible
look into creative financing in the healthcare
sector, in hopes of spurring action and further
creative innovation.
Summary
The world’s first Micro-Health Impact Bond
(Micro-HIB) is aimed at reducing readmissions
of patients suffering from cardiovascular
diseases, as well as a reduction of overall
emergency room (ER) visits. The Howard
University Hospital (HUH) Non-cognitive
Development Institute (HU-NDI) and the
Howard Non-cognitive Development Institute-
Alliance (HU-NDIA), will form a group of
community businesses, organizations, and
http://www.medicalpracticeinsider.com/news/comp
liance/panel-says-medicare-unfairly-penalizes-
hospitals-serving-poor
THE MICRO-HEALTH IMPACT BOND

pg. 3
healthcare patients coming together to ensure
quality affordable healthcare and innovative
research initiatives. The Alliance will collectively
achieve a higher level of efficiency and
productivity in the development of a patient
centered paradigm. Its purpose will be achieved
by the implementation of a globally competitive
health impact structure.
The Micro-HIB, will serve a total of 100
residents annually for three years in the target
areas of Northeast Washington, DC. The area
was chosen because of its immense need and
opportunity to yield substantial results. After
completion of the readmission program,
participants will demonstrate a proficiency in a
set of low-cost therapies, including smile
therapy, non-cognitive development therapy,
and mindfulness meditation to enhance health
outcomes related to Major Depressive Disorder
(MDD), while achieving and maintaining a high
level of patient satisfaction. Partnering with
relevant local organizations, the HUH Micro-HIB
will accomplish significant cost-savings by
decreasing patient readmissions for
cardiovascular diseases and lowering the
number of daily ER admissions.
Objectives
The Micro-HIB will meet the goals of reducing
cardiovascular patient readmissions and daily
ER admission through the implementation of
leading international health and management
strategies. The Micro-HIB will achieve the
following five measurable objectives by Year 3
of the pilot program:
1) Decrease daily emergency admissions
by 1% in YR-1, and 2% in YR-2 & YR-3;
2) Decrease in-patient readmissions for
cardiovascular diseases by 8%;
3) Decrease MDD by 5% among program
participants admitted for cardiovascular
diseases (i.e., Heart Disease, Myocardial
Infarctions, and Pneumonia) and/or
prevent episodes of MDD as a result of
low-cost therapies;
4) Increase patient non-cognitive
development by 20% in at least one
non-cognitive development area (i.e.,
self-discipline, self-responsibility,
persistence, fearlessness, excellence,
foresight, character, and humility);
5) Achieve a 3-star rating on the Hospital
Consumer Assessment of Healthcare
Providers and Systems (HCAHPS) for
patient satisfaction (the current rating
is 2-stars).
Program Plan
The HU-NDIA will be placed within the existing
framework of HUH, who will coordinate and
house the programming, while I8I will provide
consulting, project management, technical
assistance, leaderships, and resources for the
life of the 3-year Micro-HIB. A collaboration of
organizations will form the HU-NDIA, who will
serve as a university, community, and city-wide
research, best-practices, and innovation
network. The HU-NDIA will share best-practices
and accelerate innovation through the
voluntary production of presentations, panel
sessions, and a single annual white paper
concerning project discoveries by members of
the board. The HU-NDIA will also serve as an
advisory body to the NDI, comprised of eight
voting board positions. The HU-NDIA will
initially consist of the following organizations
and/or organization types: Howard University &
Howard University Hospital, Quality
Improvement Organizations, University Hospital
Consortium, District of Columbia Hospital
Association, District of Columbia Healthcare
Finance Administration, Managed Care
Organizations, Long-term Acute Care Hospitals
and Skilled Nursing Facilities, Home Health
Agencies, Walgreens Pharmacy, CVS Pharmacy,
and Uber & other transportation companies.
Additionally, the HU-NDI will coordinate the
following internal programs to achieve program
objectives: Community Health & Family
Medicine, Dietary, Finance, Pediatrics,
Environmental Services, Information Desk,

pg. 4
Medical Records, Nursing Patient
Transportation, Physical Therapy, Printing and
Duplicating, Radiology, Multicultural Affairs,
Occupational Therapy, Anesthesiology,
Emergency Medicine, Internal Medicine,
Psychiatry & Behavioral Sciences, Howard
University Heart Center, Howard University
Diabetes Center, and Center for Sickle-Cell
Disease.
I8I and HUH will collaborate to form a hiring
committee to determine qualified candidates
for the position of NDI Executive Director,
Patient Experience Manager, and
Administrative Assistant. The NDI will also
independently contract with in-home
healthcare providers to provide patient follow-
up within 3 days, in addition to status
monitoring, wellness counseling, educational
development, and specialized therapies for 3-
months following patient readmission. Patients
will also be retro-fit with wearable technology
(i.e., Smartwatches), in order to better manage
their heart rate, exercise, and emergency
communication. Independent contractors will
receive 16 hours of training to deliver the
following specialized therapies, which include:
Smile Therapy, Mindfulness Meditation, and
Non-cognitive Development. Oxygen and
Exercise Therapy Training will be provided to
patients upon need. Independent contractors
will also carry a caseload of 10 voluntary of
physician recommended program participants.
A waiting list will immediately fill program slots
as they become available. The Community Clinic
will also be extended for one hour during week
days in YR-1 and two hours in YR-2 to curb
unnecessary ER visits.
Financials
The Micro-SIB will be a private contractual
agreement between multiple interested parties.
I8I seeks to create a 3-year Micro-SIB with an
annual budget of $500,000, utilizing national
and international best healthcare practices to
accomplish the project objectives. The
outcomes will be assessed by an independent
third party intermediary. I8I will also conduct a
feasibility study to quantify cost-savings and
assess potential quantitative impact as a result
of Socially Responsible Investments (SRI). I8I will
collaborate with HUH to solidify investors for
up-front costs as well as philanthropic and/or
financial sector support to pay for successful
outcomes. The outcomes will be assessed by an
independent third party assessor.
A. Initial Estimate of HUH Cost-savings
a. AnnualIn-patient Readmission Cost-savings
(Heart Disease, MCI, & Pneumonia)
i. 5% reduction in YR-1
1. YR-1 Cost-savings = $117,553
ii. 6% reduction in YR-2
iii. 8% reduction in YR-3
iv. 3-YR Subtotal Cost-savings = $445,
464
b. AnnualER Admission Reduction Cost-savings
i. 1% reduction in YR-1 (ER hours
extended +1)
1. Annual Cost-savings =
$2,562,090.125
ii. 2% reduction in YR-2 (Clinic hours
extended +2)
1. Annual Cost-savings =
$5,124,180.125
iii. 2% reduction in YR-3 (Clinic hours
extended +2)
iv. 3-YR Subtotal Cost-savings =
$12,080,450
B. TOTAL AnnualEstimated HUH Cost-savings
a. Annual Subtotal YR-1 =
$3,007,554.125
b. Annual Subtotal YR-2 = $5,569,644.25
c. Annual Subtotal YR-3 = $5,569,644.25
d. ANNUAL TOTAL COST-SAVINGS YR-1
= $2, 305,054.125
e. ANNUAL TOTAL COST-SAVINGS YR-2
= $4,867,144.25

pg. 5
f. ANNUAL TOTAL COST-SAVINGS YR-3 =
$4,867,144.25
g. (Subtracted) Annual Programmatic
Costs YR-1, YR-2, YR-3 = $500,000
h. (Subtracted) Annual Investor 13.5%
Interest Rate YR-1, YR-2, & YR-3 = $202,
500
i. 3-YR TOTAL PROJECTED COST-
SAVINGS = $12,039,342.63
Recruitment
HU-NDI will collaborate with HUH staff to
recruit up to 100 newly admitted candidates to
participate in the HU-NDI programming.
Candidates will then be interviewed while
admitted, and selected upon June 22, 2015
evaluation and joint recommendation by HU-
NDI and HUH Staff. HU-NDI will also recruit
candidates for the program on a referral basis.
Candidates will then be interviewed, and
selected by a joint committee of HU-NDI and
HUH staff.
A. Target population of NDI program
participants:
1. District of Columbia (DC) residents;
and
2. Medicare/Medicaid patients
admitted for complications related to
Heart Disease, Myocardial Infarctions,
and Pneumonia.
Role of Major Depressive Disorder
(MDD) in Patients with Cardiovascular
Diseases
Heart Disease & Myocardial Infarctions
7
Jiang W, Davidson JRT. Antidepressant therapy
in patients with chemic heart disease. American
Heart Journal, November 2005. 871-881
8
Frasure-Smith N, et al. Depression following
myocardial infarction: Impact on 6-month
Heart Disease & Myocardial Infarctions are
among the leading causes of patient
readmission in America. Up to 15 percent of
patients with cardiovascular disease and up to
20 percent of patients who have undergone
coronary artery bypass graft (CABG) surgery
experience major depression.7
Unmanaged
stress can lead to high blood pressure, arterial
damage, irregular heart rhythms and a
weakened immune system. Patients with
depression have been shown to have increased
pro-inflammatory markers (such as C-reactive
protein or CRP), which are all risk-factors for
cardiovascular disease. For people with heart
disease, depression can increase the risk of an
adverse cardiac event such as a heart attack or
blood clots.8
For people who do not have heart disease,
depression can increase the risk of a heart
attack and development of coronary artery
disease. In one landmark study, the continued
presence of depression after recovery increased
the risk of death (mortality to 17 percent within
six months after a heart attack versus 3 percent
mortality in heart attack patients who didn’t
have depression).9
During recovery from cardiac surgery,
depression can intensify pain, worsen fatigue
and sluggishness, or cause a person to withdraw
into social isolation. Patients who have had
coronary artery bypass graft and have
untreated depression after surgery also have
increased morbidity and mortality. Patients
with heart failure and depression, have an
increased risk of being readmitted to the
hospital, and also have an increased mortality
risk. Early research findings have indicated that
Survival. JAMA, October 20, 1994. 270(15):
1819-1825.
9
Frasure-Smith N, et al. Depression following
myocardial infarction: Impact on 6-month
Survival. JAMA, October 20, 1994. 270(15):
1819-1825.

pg. 6
there may be genetic factors that increase a
patient’s risk of depression and risk of recurrent
events after a heart attack.10
Patients with heart disease and depression also
perceive a poorer health status, as manifested
by Quality of Life (QoL) Studies. Furthermore,
heart disease patients with depression have
worse treadmill exercise and medication
adherence than that of patients with heart
disease, who do not have depression.11 1213
Negative lifestyle habits with depression, such
as smoking, excessive alcohol consumption, lack
of exercise, poor diet and lack of social support
– interfere with the treatment of heart disease.
Depression has been proven to be such a risk
factor in cardiac disease that the American
Heart Association (AHA) has recommended that
10
Nakatani D, et al. Influence of Serotonin
transportation gene polymorphism on
depression symptoms and new cardiac events
after acute myocardial infarction. American
Heart Journal, October 2005. 150 (4): 652-658
11
Ruo B, et al. Depressive Symptoms and heart-
related quality of life: the Heart and Soul Study.
JAMA, July 9, 2003. 290(2): 215-221.
12
Geh, AK, et al. Self-reported medication
adherence and cardiovascular events in patients
with stable coronary heart disease: the Heart
and Soul study. The American Journal of
Cardiology, September 15, 2003. 922(6) 705-
707.
13
Gehi AK, et al. Relations of Sel-reported
angina pector is to inducible myordial ischemia
in patients with known coronary artery disease:
the Heart and Soul Study Archives of Internal
Medicine, November 2005. 165(2): 2508-2513.
14
Litchman JH, et al. Depression an coronary
heart disease: Recommendation for screening,
referral and treatment. A science advisory firm
from the American Heart Association
Prevention Committee of the Council on
Cardiovascular Nursery, Council on Clinical
all cardiac patients be screened for depression
using simple screening questions and an easy-
to-administer survey called the PATIENT
HEALTH QUESTIONNAIRE (PHQ-2).14
Patients
with MDD had a significantly higher probability
of an intensive care unit admission, need for
mechanical ventilation, and in-hospital death
than patients without MDD.15
Pneumonia
Depression was associated with 1.28-times
greater odds of pneumonia hospitalization.16
After treatment for pneumonia, patients also
had nearly double the risk of substantial
depressive symptoms.17 After adjusting for
demographic characteristics, clinical factors, and
health-risk behaviors, depression was
independently associated with increased odds of
hospitalization for pneumonia.18
Cardiology, Council on Epidamology and
Prevention, and Interdisciplinary Council on
Quality of Care and Outcome Research:
endorsed by the American Psychiatric
Association. Circulation, Oct 21 2008. 118(17);
1768-1775.
15
Kao L-T, Liu S-P, Lin H-C, Lee H-C, Tsai M-C,
Chung S-D (2014) Poor Clinical Outcomes
among Pneumonia Patients with Depressive
Disorder. PLoS ONE 9(12): e116436.
doi:10.1371/journal.pone.0116436
16
Kao Li-Ting, Poor Clinical Outcomes among
Depression Patients with Pneumonia. 2014 Dec
31; 9(12): e116436.
http://www.jpsychores.com/article/S0022-
3999(14)00286-4/abstract.
17
Catherine L. Hough, M.D., M.Sc., U-W;
Deborah A. Levine, M.D., M.P.H., U-M and VA;
Kenneth M. Langa, M.D., Ph.D., U-M and VA.
Functional Disability, Cognitive Impairment, and
Depression After Hospitalization for
Pneumonia,” American Journal of Medicine,
doi:10.1016/j.amjmed.2012.12.006.
18
Davydow DS, Hough CL, Zivin K, Langa KM,
Katon WJ. Depression and Risk of
Hospitalization for Older Americans. J

pg. 7
LOW-COST STRESS REDUCTION
THERAPIES
Smile Therapy
Holding a smile on one’s face during periods of
stress may help the heart. Muscle problems
brew in a core of the body with the shoulders at
its base and the forehead at its peak – the
tension triangle. Muscles in this area react
dramatically to psychological pressure: the
brow furrows, the jaw clenches, the neck
tightens and the shoulders rise. Corrugator
muscles, the ones the knit the brow into a
frown, tighten in response to emotional
tension. A study at the Massachusetts General
Hospital in Boston shows that depressed people
have chronically tensed corrugators, even when
they do not look as if they are frowning.
Furthermore, tension in the corrugators, along
with the nearby frontalis muscle is such a good
gauge of muscle tension throughout the body
that the forehead muscles are used in bio
feedback training to monitor overall tension. As
muscles throughout the body relax, tension
leaves the forehead.19 Researchers say their
findings suggest smiling during brief periods of
stress may help reduce the body’s response to
stress, regardless of whether or not the person
actually feels happy or not.20
According to Mark
Stibich, Ph.D., at Columbia University, smiling:
a. Relieves stress – Stress does express
itself right in our faces. When we smile,
Psychosom Res. 2014 Dec;77(6):528-34. doi:
10.1016/j.jpsychores.2014.08.002. Epub 2014
Aug 11.
19
Goleman, Daniel, and Tara Goleman.
"Relieving Stress: Mind Over Muscle." New York
Times 28 Sept. 1986: n. pag. Print.
20
Kraft, Tara L.; Pressman, Sara D.; “Grin and
Bear It: The Influence of Manipulated Facial
Expression on the Stress Response.”
it can help us look better, less tired, less
worn down.
b. Boosts Immune System – Smiling can
actually stimulate your immune
response by helping you relax.
c. Lowers Blood Pressure – When you
smile, there is evidence that your blood
pressure can decrease.
d. Releases Endorphins and Serotonin
– Research has reported that smiling
releases endorphins, which are natural
pain relievers, along with serotonin,
which is also associated with feel good
properties.
e. Duchenne (full) – Smiles are the only
types of smiles that create this positive
effect. These smiles engage the muscles
in the mouth, cheeks, and eyes and are
considered to be genuine smiles.21
Mindfulness Meditation
We conclude that an intensive but time-limited
group stress reduction intervention based on
mindfulness meditation can have long-term
beneficial effects in the treatment of people
diagnosed with anxiety disorders.22
Psychological risk factors such as anxiety and
depression have been associated with Coronary
Heart Disease (CHD). Stress can have an impact
on the risk factors for the disease, such as high
blood pressure (BP), physical activity, and being
overweight. The economic and social burden on
the healthcare system due to CHD, is increasing
21
Stibich, Mark, Ph.D. "Top Reasons to Smile."
Web log post. About Health. N.p., 7 Mar. 2015.
Web. 7 June 2015.
<http://longevity.about.com/od/lifelongbeauty
/tp/smiling.htm>.
22
Miller, John J; Fletcher, Ken; Kabat-Zinn, Jon.
Three-Year Follow-up and Clinical Implications
of a Mindfulness Meditation-based Stress
Reduction Intervention in the Treatment of
Anxiety Disorders. General Hospital Psychiatry
17, 192-200, 1995.

pg. 8
medical costs of heart disease, including
surgeries and cardiac rehabilitation programs.
The present study provides evidence for the
effectiveness of Mindfulness Meditation-based
Stress Reduction programs in reducing
symptoms of anxiety and depression, perceived
stress, BP and BMI in patients with CHD, and
offers new insights in the management of
patients with CHD.23
Non-cognitive Development Therapy
Non-cognitive skills represent personality traits
and socio-economic skills…including
extraversion, conscientiousness, openness to
experience, agreeability, and emotional
stability.24 The strongest correlation…are among
non-cognitive skill measures, such as between
internalizing and externalizing behavior (i.e.,
and between these two indicators and the
depressive symptoms scale.25
Higher health
outcomes at age 42 were observed among
clinical adolescent participants who scored
higher on non-cognitive assessments and self-
reports.26
The Macro-SIB is a public transaction, where
government either pays investors for successful
outcomes, or government serves as the
financial administrator of funds, using the full
faith of the government to add legitimacy to the
transaction and mitigate investor risk.
FEASIBILITY
23
Parswani, Manish J; Shama Mahendra P; and
Hyengar, SS. Mindfulness-based Stress
Reduction Program in Coronary heart disease: A
randomized control trial. International Journal
of Yoga 6(2), 2013 June 13; 75, 111-117.
24
Mohamed Ihsan Ajwad, Joost de Laat, Stegan
Hut, Jennica Larrison, Ilhom Adbulloev, Robin
Audy, Zlatko Nikoloski, and Federico Torrachi
25
Glewwe, Paul, Qiuqiong Huang, and Albert
Park. "Cognitive Skills, Non-Cognitive Skills, and
As a part of the service provision of the Micro-
SIB, a full feasibility study will be conducted by
I8I in order to formalize and assess the overall
economic impact, qualitative impact, costs, as
well as cost-savings concerning the HUH Micro-
HIB for Cardiovascular Diseases.
DATA COLLECTION & ANALYSIS
Data collection and analysis will be
implemented by the Patient Experience
Manager, who will report bi-monthly to the
Executive Director concerning project updates.
Data will be input and kept current by the
Administrative Assistant and Executive Director.
The Executive Director will be responsible for
meeting quarterly and reporting annually to the
HU-NDIA, who will provide recommendations
and assessment. The Executive Director will
publish the HU-NDI’s annual report, making the
results and progress available to the public and
academic community. The NDI will follow a
three-pronged plan: Communication,
Education, and Follow-up in accordance with
National best-practices (Cleveland Clinic). This
will include information continuity,
management continuity, and relational
continuity. The Cleveland Clinic is among the
15% of hospitals that achieved an overall three-
star rating from the Society of Thoracic
Surgeons (STS) FOR CABG Survey. The ratings
reflect the highest quality of cardiac surgery.
The HU-NDI will measure the following metrics
among project participants:
1. Patient Satisfaction Survey
2. Discharge Rx Correct Capture rate
the Employment and Wages of Young Adults in
Rural China." 2011 Annual Meetings, July. 2011;
17.
26
Carneiro, Pedro; Crawford, Claire; Goodman,
Alissa. The Impact of Early Cognitive and Non-
cognitive Skills on Later Outcomes. Centre for
the Economics of Education. 1 January 2007.

pg. 9
3. 30-day readmission rates
4. Patient Loyalty Scores
5. MDD Survey
6. Hospital Anxiety and Depression
Scale, Perceived Stress Scale, Blood
Pressure, and Body Mass Index (BMI).
7. Exercise Stress Test27
WEARABLE TECHNOLOGY
The program will also integrate affordable
wearable technology with the patient
experience for the duration of the 3-month
program, specifically the Pebble Smartwatch,
providing a discrete and modern device with
heartrate monitoring and exercise focused
applications that will be customized to the
specifications of HUH and the needs of the NDI
program. The device will also be simple to use,
further allowing for a one-touch emergency
response feature to contact all designated
parties, such as caretakers, family, physicians,
and 911 emergency support. The device will be
returned to the HU-NDI upon patients exiting
the program.
CONTRACT FORMATION
The University of Georgetown’s Social
Enterprise & Non-profit Law Clinic, a division of
Georgetown Law, has agreed to partner with
I8I, and author a standard contractual
agreement for the Micro-SIB, providing a
framework for Micro-HIB’s.
STANDARD VS. COMMUNITY-BASED
METRICS?
The Micro-HIB will utilize the IRIS Metrics as a
bare framework, providing standard metrics for
a variety of fields to build off of, while also
27
Haggerty, J.L.,R.J. Reid, G.K. Freeman, B.H.
Starfield, C.E. Adair, R. McKendry, “Continuity of
Care: A Multi-disciplinary Review,” BMJ 327
(7425)(2003): 1219-1221
encouraging stakeholders to exercise freedom
of discretion regarding the customization and
implementation of community-based
standards. Therefore, the local negotiating table
will have the final say concerning the ultimate
determination of project metrics.
RELEVANT LEGISLATION
Federal Legislation
Social Impact Partnership Act (H.R. 1336) – On
March 4, 205, U.S. Representatives Todd Young
(R-IN) and John Delaney (D-MD) – along with
eight other bipartisan cosponsors reintroduced
H.R. 1336, which would create a one-time
$300M fund at the Office of Management and
Budget to support the development of new
social impact bond deals at the state and local
level over the next 10 years.28
Social Impact Partnership Act (S. 1089) – On
April 27, 2015, U.S. Senators Orrin Hatch (R-UT)
and Michael Bennet (D-CO) reintroduced a
companion bill to H.R. 1336, the Social Impact
Bond Partnership Act (S. 1089), which would
create a $300M fund at the U.S. Treasury to
support PFS at the state and local level.29
Every Child Achieves Act (S. 1177) – On July 16,
2015, the U.S Senate passed legislation that
would reauthorize the Elementary and
Secondary Education Act (ESEA), (1) which
would allow states and local school districts to
invest in their Title I, Part D funds (Programs for
Neglected, Delinquent, and At Risk Children and
Youth, $47.6M in FY15) in PFS initiatives; (2)
allow local school districts to invest their Title
IV, Part A funds (Safe and Drug Free Schools and
Communities, $70 million in FY15) in PFS
initiatives; and (3) allow states to invest their
early childhood coordination funds (Early
28
H.R. 1336, 114th
Cong. (2015).
29
S. 1089, 114th
Cong. (2015).

pg. 10
Learning Alignment and Improvement Grants,
newly authorized program) in PFS initiatives.30
The Student Success Act (H.R. 5) – On July 8,
2015, the U.S. House passed its ESEA
reauthorization bill – H.R. 5, the Student
Success Act, which would (1) allow states and
local school districts to invest their Title II, Part
A funds (Teacher Preparation and Effectiveness,
approximately $2.3 billion in FY15) in Pay for
Success initiatives; and (2) would allow states
and local school districts to invest their Teacher
and School Leader Flexible Grant Funds (a new
program authorized at $697 million) in PFS
initiatives.31
Workforce Innovation and Opportunity Act
(WIOA) – On July 22, 2014, President Obama
signed the WIOA into law. This bipartisan
legislation, authorizes the three largest federal
workforce development programs (Youth
Workforce Investment program, Adult
Employment and Training program, and
Dislocated Workers Employment and Training
program), which includes new provisions which:
(1) increase the amount of WIOA funds can set
aside and distribute directly from 5-10% and
authorize them to invest these funds in Pay for
Performance initiatives; (2) authorize states to
invest their own workforce development funds,
as well as non-federal resources, in Pay for
Performance initiatives (3) authorize local
workforce investment boards to invest up to
10% of their WIOA funds in Pay for Performance
initiatives; and (4) authorize states and local
workforce investment boards to award Pay for
Performance contracts to intermediaries,
community based organizations, and
community colleges.32
30
S. 1177, 114th
Cong. (2015).
31
H.R. 5, 114th
Cong. (2015).
32
H.R. 803, 113TH
Cong. (2014).
33
H.R. 1493, 110th
Cong. (2008).
Second Chance Act – Through the U.S.
Department of Justice’ Second Chance Act,
whose program goals are to “reduce recidivism,
provide reentry services, conduct research, and
evaluate the impact of reentry programs.” The
FY14 and FY15 federal appropriations bills also
authorized the Department to invest up to
$7.5M of its Second Chance Act funds in Pay for
Success efforts, including $5M to implement
projects using the Permanent Supportive
Housing model.33
Corporation for National and Community
Service – FY16 and FY15 Federal appropriations
bills authorized the Corporation for National
and Community Service (CNCS) to invest up to
20% of the Social Innovation Fund (SIF) (up to
$14 million) in Pay for Success initiatives. Key
focus areas include: economic opportunity,
healthy futures, and youth development.
Federal grant dollars must be matched by the
grantee with nonfederal dollars and services.34
U.S. Dept. of Housing & Urban Development –
The Obama Administration’s FY16 Budget
request seeks demonstration authority allowing
the U.S. Department of Housing & Urban
Development (HUD) to use PFS deals to finance
energy efficiency retrofits in HUD-assisted
housing through reduction in utility costs.35
FY16 Total Proposed Exec. Budget = $364M
U.S. FEDERAL TAX INCENTIVES
New Market Tax Credits (NMTC) – The New
Market Tax Credit program stems from the
Community Renewal Tax Relief Act of 2000,
which to date has allocated $29.5B in
investments to privately management
investment institutions. Through the creation of
34
“National ServiceAgency Announces $12M to
Support Pay for Success Projects. NCS. NCS, 1
October 2014. Web. 7 September 2015.
35
“Improving Outcomes through Pay for Success.”
White House. WhiteHouse, 13 April 2015. Web. 7
September 2015.

pg. 11
Community Development Financial Institutions
(CDFIs), who privately administer raised capital
for Micro-SIBs, investors are able to recoup tax
credits of up to 39% of their cash equity
investment over a period of seven years (5% in
years 1-3, and 6% in years 1-3).36
Low-income Housing Tax Credits (LIHTC) – The
LIHTC program was created in 1986 to
encourage private investment in the
development and rehabilitation of rental
housing for low to moderate-income families,
seniors, and persons with special needs. LIHTCs
are governed by Section 42 of the Internal
Revenue Code and corresponding Federal
Regulations. Tax credits under the LIHTC
program are transferrable and able to be sold to
investors for capital or equity. The aim of the
legislation is to provide lower rents that are
affordable for low-income and moderate-
income households, while giving investors’ tax
breaks that exceed their total investment in the
real estate.37
Consumer Energy Efficiency Tax Credits –
Under the Tax Increase Prevention Act of 2014,
eligible consumer items, such as Geothermal
Heat Pumps, Small Residential Wind Turbines,
and Solar Energy Systems, provide tax credits
for up to 30% of the cost, up to $500 per .5 KW
of power capacity. Existing homes and new
construction do qualify. Rental homes and
second homes do not qualify.38
Losses on Sale of Small Business Equity – Under
IRS 1244, investors’ who invest in a company
with less than $1M in assets – and lose their
investment, may be able to write off the loss as
an ordinary loss rather than a capital loss, which
allows investors to write off up to $50,000 in
36
”New Markets Tax IncentiveProgram.” CDFI. CDFI.
3 September 2015. Web. 7 September 2015.
http://www.cdfifund.gov/what_we_do/programs_id
.asp?programID=5.
37
National Associationof HomeBuilders, The local
Economies Impact of Typical HousingTax Credit
Developments (March2010).
losses on a qualified domestic corporation. This
in turn can be used to reduce an investor’s
ordinary income, which otherwise would be
taxed at a maximum rate as high as $39.6%.39
For more information on Micro-HIB’s, please
contact us at info@infinite8institute.com and
www.infinite8institute.com.
38
“Federal Tax Credits for Consumer Energy
Efficiecy.” Energy Star. Energy Star, 30 October 2013.
Web. 7 September 2015.
https://www.energystar.gov/about/federal_tax_cre
dits.
39
26 U.S.C. Sec. 1224 (1958).
https://www.law.cornell.edu/uscode/text/26/1244,

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