pay for success | The Contracting Education Academy

The Obama administration is “doubling down” on its study of the “pay for success” approach to funding social services programs after they demonstrate results, rather than in advance.

In a blog post last week, Budget Director Shaun Donovan and Domestic Policy Council Director Cecelia Munoz wrote that “with the addition of 25 new Pay for Success feasibility studies across the country, the federal government is significantly increasing its investment in PFS.”

Through the Social Innovation Fund housed at the Corporation for National and Community Service, the administration will raise the number of such studies from 33 to 58. Under Pay for Success, “instead of paying upfront for a social service that may or may not achieve the desired results, the government only pays once an intervention produces specific, measurable, and positive outcomes,” they wrote. Investors provide the up-front money for programs such as a community-re-entry program for released prisoners, and then are repaid with a return if the desired outcome—the ex-prisoners do not end up re-incarcerated—are achieved.

Keep reading this article at: http://www.govexec.com/contracting/2016/04/what-happens-if-you-pay-contractors-only-when-their-programs-work/127660

See previous article on this topic at: http://contractingacademy.gatech.edu/tag/pay-for-success/

The “pay for success” movement in the non-profit world is starting to take hold at the federal, state, and local levels. But a prerequisite is having some way of measuring success — and ensuring that funding models encourage it.

IBM's Center for the Business of Government has issued a report featuring State of Tennessee today has one of the nation’s best performance-contracting systems for its child welfare program. — IBM’s Center for the Business of Government has issued a report featuring the State of Tennessee’s performance-contracting system for its child welfare program, one of the nation’s best.

The Urban Institute has launched a new web resource to explain various forms of performance-based contracting aimed at delivering targeted, high-impact preventative social services where an intervention at an early stage could reduce the need for higher-cost services in the future.

Pay for success funding systems can take many different forms and already operate in different policy arenas. “They include value-based payments to hospitals and nursing homes, performance-based contracts with workforce providers, merit-based pay in schools, and performance-based payments to colleges and universities,” according to Patrick Lester, director of the Social Innovation Research Center at the IBM Center for the Business of Government. These involve many billions of dollars in annual public funding.

Two of the most prominent of these outcome-based funding systems are social impact bonds and performance-based contracting. A new IBM Center report by Lester offers a guide to understanding and selecting the best approach—through performance-based contracting or social impact bonds—depending on the situation at hand.

Keep reading this article at: http://www.govexec.com/excellence/promising-practices/2016/04/how-design-contracts-deliver-results/127250

The Obama administration is “doubling down” on its study of the “pay for success” approach to funding social services programs after they demonstrate results, rather than in advance.

The “pay for success” movement in the non-profit world is starting to take hold at the federal, state, and local levels. But a prerequisite is having some way of measuring success — and ensuring that funding models encourage it.

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