Royal Alexandra Hospital Foundation Social Enterprise Company
Is there a difference between the Royal Alexandra Hospital Foundation and the Royal Alexandra Hospital Foundation Social Enterprise Company?
Yes. These are two separate entities governed by separate and independent boards.
The Royal Alexandra Hospital Foundation, established in 1984, exists to advance the health of all Albertans. It is a charity and it has a charitable registration number. It can issue tax receipts for donations.
While the RAHF and RAHFSEC are two separate organizations, the RAHF and RAHFSEC are closely aligned in their common goal of advancing healthcare for all Albertans.
What is the Royal Alexandra Hospital Foundation Social Enterprise Company?
The Royal Alexandra Hospital Foundation Social Enterprise Company (RAHFSEC) is an independent entity, a company, incorporated in 2016 to pursue options for investment. It is a company that has a social mission -- one in which any profit earned is, in turn, distributed to support healthcare through the Royal Alexandra Hospital Foundation.
What is social enterprise?
Essentially, it is an enterprise (a for-profit business) that exists for a social cause or the public good. In the case of the RAHFSEC the public good is advancement of health through distributions to the Royal Alexandra Hospital and its medical centres of excellence.
Social enterprises are common. The Goodwill Thrift Stores and hospital gift shops are great examples of a social enterprise. In addition to providing social programs and/or support services, a social enterprise will also operate one or more profit enterprises to generate earned income.
What type of for-profit investments is the RAHFSEC involved in?
Since its inception the RAHFSEC has been exploring options in concert with Alberta Health, Alberta Health Services and elected officials. These have included ideas like constructing a parkade or entering into a P3 to construct hospital infrastructure. The current option being explored is to have the company invest in a purpose built building to lease to a potential non-hospital surgical facility by surgeons under contract with Alberta Health Services for insured services.
What is a P3 Project?
Public Private Partnerships or P3s are a long-term approach to procuring public infrastructure where the private sector assumes a major share of the risks in terms of financing and construction, from design and planning, to long-term maintenance.
What do the profits from the RAHFSEC support?
In any model considered, all profits from the RAHFSEC investment would return to the health system through the Royal Alexandra Hospital Foundation. The sole purpose for creating the RAHFSEC is to grow capacity to support the public health system.
How are investment decisions made by the RAHFSEC?
The RAHFSEC considers any and all appropriate proposals made through Alberta Health, Alberta Health Services and private corporations. The RAHFSEC’s oversight committee would then make a recommendation and request for funding to the Royal Alexandra Hospital Foundation and its board. The Royal Alexandra Hospital Foundation would then evaluate and decide on the merits of making a decision to move forward with an investment.
Have any recommendations or requests for funding been made to the Royal Alexandra Hospital Foundation to date?
No, to date the RAHFSEC has not made a recommendation to the foundation nor has it made a request for funding.
Is the Royal Alexandra Hospital Foundation involved in any other for-profit business operations?
Full House Lottery is a for-profit business model that is more commonly referred to as charitable gaming, and could be considered a social enterprise.
Full House Lottery has raised more than $80 million for our hospitals across 25 years. There isn’t one corner of the Royal Alexandra Hospital campus that hasn’t been positively impacted by this social enterprise.
Do other charitable organizations benefit from the support of social enterprise companies as well?
Many charitable organizations across Canada benefit from the support of various social enterprise companies in order to build upon capacity to serve their charitable focus, which in our case is support for the Royal Alexandra Hospital and the hundreds of thousands of patients who rely on it each year.