Origins and funding

The Health Foundation’s origins lie in the London Association for Hospital Services – a mutual health insurance scheme for middle-income Londoners. Set up in 1938, before the NHS existed, the organisation later became known as the PPP Healthcare Group. In 1940 it became an incorporated company, with support from the British Medical Association, The King’s Fund (then the King Edward’s Hospital Fund for London) and the medical royal colleges.

PPP had decided that if it was ever sold, the proceeds would be used to set up a charity supporting health. So, in 1998, when it was bought by Guardian Royal Exchange Assurance (today, part of AXA insurance) PPP provided an endowment of £560m – one of the largest in UK history – to establish the PPP Healthcare Medical Trust. The trust was renamed the PPP Foundation in 2001 and in 2003 took its current name – the Health Foundation. It initially rented offices from The King’s Fund in Cavendish Square, near Oxford Street, moving to Long Acre, Covent Garden, in 2003.

Today, the endowment is valued at over £1bn and continues to fund the Foundation’s charitable activities. This model is essential to the Foundation’s independence and ability to plan and fund work for the longer term.

The Foundation’s journey

The Health Foundation has evolved from an organisation focused on funding clinical research, to one focused on health care improvement. It now pursues a broader mission to bring about better health and care across the UK.

The Foundation’s early work emphasised clinical and applied research and then later practical activity, such as testing and rolling out individual health service improvements. Over time, the Foundation became increasingly interested in sharing lessons from its research and programmes. Its approach to funding developed too, broadening to include improving the quality of health care at a system level. With this wider, systems-based approach and a longer term vision, the Health Foundation became a stronger national voice for quality in health and care.

In the early 2010s the Foundation’s work was dominated by patient safety and person-centred care, with a £20m suite of programmes on innovation, scaling and spreading improvement. These changes to grant making in the 2010s paved the way for a more diverse model in the 2020s that today includes large-scale research grants, matched funding, collaborative grant making, and social franchise models.

From 2013, under Jennifer Dixon’s leadership, the Foundation has broadened its mission to include public health and social care, alongside its existing focus on improving the quality of health care. It has also expanded its in-house expertise to include health and social care policy, economic analysis and data analytics. Today, the Foundation continues to fund and influence evidence-based health and care policy and practice, using a wide range of methods that it has developed and experimented with over time.

In 2021, the Foundation spent £30m directly on furthering its mission, including £16.6m on external funding programmes. These ranged from small, one-off sums to multi-year demonstration programmes and fellowships. The Foundation continues to fund research and practice on improving health care while opening up its grant making to support local authorities and work on the wider determinants of health. The organisation’s model also offers the flexibility to provide short-term funding support when needed. For example, the Foundation implemented a funding programme that donated around £5m in direct relief to people disproportionately impacted by the COVID-19 pandemic.

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