Social Impact Bonds

Blog Post created by 1823873 Employee on Jun 19, 2014

I recently read an interesting article about Social Impact Bonds and Value-Based Contracting (essentially pay-for success/risk-based contracting models) within the Health and Human Services field. In short, PFS (pay-for-success) financing is designed to direct taxpayer dollars to interventions that demonstrate success in delivering social and economic outcomes to individuals, families, and communities in need. How social impact bonds come into play is they involve private investors making loans to provider organizations to start up specific programs, then government agencies contract with that provider organization for the specific program, stipulating that payment will only be made if the program achieves set specific outcomes. Social Impact Bonds provide a model for private capital to supplement government budgets within the Health and Human Services field.


This is a new model for HHS financing, and I am curious whether or not it will work. What does everyone out there in Relias Connect think about it. For further reading, follow the link below.