Social Finance is now accepting applications from governments and nonprofits for Round 2 of the Outcomes Rate Card Development Competition. Learn more here.
Outcomes rate cards are a menu of outcomes that government seeks to achieve and the prices they are willing to pay for each outcome achievement.
They are used as a procurement and contracting tool with the ability to standardize performance-based financing, through Pay for Success, and drastically reduce the time such deals take to get to market. One rate card can result in multiple contracts with multiple providers, who must deliver against its pre-determined outcomes and prices, receiving payment only when the stated outcomes are achieved and participants’ lives are positively impacted.
Outcomes Rate Card Process
To develop an outcomes rate card, government selects outcomes, identifies target population(s), sets prices, and selects an evaluation/measurement methodology as the basis for a PFS procurement for multiple service providers.
The outcomes rate card is a tool to launch multi-provider procurements with the ability to innovate the US PFS market by standardizing processes, expediting development timelines and significantly increasing the number of PFS projects launched.
The Innovation Fund, the first outcomes rate card project developed in the UK, leveraged a single rate card to: deploy roughly £30 million of capital, finalize 10 contracts with six providers across the UK, and serve up to 17,000 at risk youth ages 14-24.
Outcomes Rate Cards in Development
Connecticut Office of Early Childhood & Yale Child Study Center
The Yale Child Study Center and the Connecticut Office of Early Childhood are working with Social Finance to design an outcomes rate card addressing early childhood outcomes, building on the state’s history with Pay for Success.
Riverside County Executive Office
Social Finance is working with Riverside County Executive Office to develop an outcomes rate card to improve services for Children of Incarcerated Parents. An outcomes rate card will help Riverside County expand the range of services needed to adequately support CIP, driving resources toward high-quality service providers and meeting the diverse needs of impacted children to help set them up for long-term success.
Workforce Investment Network
The Workforce Investment Network, a Tennessee-based community resource that prepares job seekers for success and helps connect them with employment opportunities, is working with Social Finance and Memphis Tomorrow to develop a rate card serving individuals at a moderate-to-high risk of re-offending.
Social Finance believes in a solutions-oriented approach to solving challenges. Outcomes rate cards expand the spectrum of PFS tools available in the US, to tackle this country’s most pressing social issues.
There is no “one PFS fits all” answer. Outcomes rate cards and other outcomes-focused mechanisms can all be tools to drive social progress, when designed thoughtfully.
In a time of rising need and shrinking resources, we need to embrace innovation and give government multiple tools with which to tackle social challenges. Outcomes rate cards provide one promising solution to contract multiple PFS projects, improving social outcomes for people in need.
Social Finance is the recipient of a 2016 grant from the Social Innovation Fund to develop outcomes rate cards with jurisdictions around the country.