Pay for Success is an approach to contracting that ties payment for service delivery to the achievement of measurable outcomes. Private investors provide upfront financing for a social service and are repaid with a return on investment by a back-end payer (usually the government) only if pre-agreed-upon outcomes are delivered as determined by an independent evaluator. It can be a way for governments to scale up effective programs and interventions, as well as test innovative models of service delivery.
Payment by Results and Social Impact Bonds: Outcome-based payment systems in the UK and US
Year: 2018