What is Pay for Success?
It's a new concept to fund and contract for social services. Instead of the traditional government contracts that pay for services or prescribed activities, governmental agencies only pay if the agreed-upon outcomes are achieved. Thus, government only Pays for Success. This concept can:
•Allow for innovative methods to be used to address complex challenges
•Encourage the development and use of evidence-informed methods
•Remove risk from government
•Efficiently provide for the allocation of scarce public funding
CHS is Piloting the Model in Florida
CHS has partnered with a local CBC lead agency to address the significant challenge of case management turnover. By using evidence-informed solutions to address the primary causes of turnover, we believe we can positively impact outcomes for children. The pilot includes the following:
•Replacing the traditional cost-reimbursement contract with a new model:
◦Both the CBC and CHS provided an upfront investment to cover costs associated with implementing evidence-informed solutions
•The mutual agreement of outcomes prior to commencement as well as the anticipated cost savings to be achieved upon success
•An independent evaluation to ensure accountability and transparency
•Expected cost savings after two years of implementation
•A long-term goal of replicating successful strategies to other systems of care
Why is Legislation Needed?
As a leader in helping children become successful, Children’s Home Society of Florida has the support of colleagues, advocates and our Board of Directors to help solve this crisis. Unlike most child welfare organizations battling this challenge, we have resources available through our foundation to manage risk associated with implementing these strategies. Pay for Success legislation could provide the statutory mechanism for more organizations to achieve successful outcomes using nontraditional methods.
Children’s Home Society of Florida advocates for Florida’s legislative and executive branches of government to support the innovative “Pay for Success” approach by creating and promoting a statewide financing model to solve key social challenges.