Does It Pay to Pay for Success? Stakeholder Perceptions of Costs and Benefits of PFS Feasibility Studies*. Issue 5 (3rd September 2022)

• Record Type: Journal Article
• Authors: Kennedy, Alexis R.
• Is Part Of: Public performance & management review. Volume 45:Issue 5(2022)
• Page Start: 1088
• Page End: 1111
• Publication Date: 2022-09-03
• Subjects: Collaboration -- finance -- pay for success; Civil service -- Labor productivity -- Periodicals; Civil service -- Labor productivity -- United States -- Periodicals; Government productivity -- Periodicals; Government productivity -- United States -- Periodicals; Public administration -- Periodicals; Public administration -- United States -- Periodicals; Civil service -- Labor productivity; Government productivity; Public administration; United States; Periodicals; 351.05
• DOI: 10.1080/15309576.2022.2059768
• Languages: English
• ISSNs: 1530-9576

Abstract

Abstract: Pay For Success (PFS) is a financial transaction model used by public entities to access private sector dollars to fund preventative programs for at-risk populations. If predetermined outcomes are met, government agencies pay private investors back with interest. Generally, a PFS feasibility study is conducted that investigates the issue, the target population, and potential evidence-based programs and their outcomes. If a positive return on investment is determined, partners can make a business case for entering into a PFS deal. Through interviews with thirteen stakeholders involved in feasibility studies in Colorado, the costs and benefits of participating in a PFS feasibility studies and barriers to why projects don't move beyond feasibility are examined. Major benefits include increased collaboration between stakeholders, intense focus on a target population and their needs, increased opportunities for funding and data networks, and a focus on paying for outcomes and an opportunity for programmatic self-assessment.