Pay For Success And Population Health: Early Results From Eleven Projects Reveal Challenges And Promise

Archived Abstract of Former PSC Researcher

Lantz, Paula M., Sara Rosenbaum, Leighton Ku, and Samantha Iovan. 2016. "Pay For Success And Population Health: Early Results From Eleven Projects Reveal Challenges And Promise." Health Affairs, 35(11): 2053-2061.

Pay for success (PFS) is a type of social impact investing that uses private capital to finance proven prevention programs that help a government reduce public expenditures or achieve greater value. We conducted an analysis of the first eleven PFS projects in the United States to investigate the potential of PFS as a strategy for financing and disseminating interventions aimed at improving population health and health equity. The PFS approach has significant potential for bringing private-sector resources to interventions regarding social determinants of health. Nonetheless, a number of challenges remain, including structuring PFS initiatives so that optimal prevention benefits can be achieved and ensuring that PFS interventions and evaluation designs are based on rigorous research principles. In addition, increased policy attention regarding key PFS payout issues is needed, including the "wrong pockets" problem and legal barriers to using federal Medicaid funds as an investor payout source.

10.1377/hlthaff.2016.0713

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