Pay for Success in South Carolina and Connecticut

On February 16, Social Finance announced two new Pay for Success projects: the South Carolina Nurse-Family Partnership Pay for Success project and the Connecticut Family Stability Pay for Success project. Social Finance served as the intermediary in both landmark projects. The announcements demonstrate the bipartisan appeal of Pay for Success: both Republican Gov. Nikki Haley (SC) and Democratic Gov. Dan Malloy (CT) have embraced Pay for Success as an approach that cuts across political ideologies and offers innovative ways to address complex social challenges.

Read CEO Tracy Palandjian’s op-ed with David Gergen in TIME.

Read Social Finance’s press release on the two announcements.

South Carolina Nurse-Family Partnership

In South Carolina, Governor Nikki Haley announced the launch of the nation’s first Pay for Success project focused on improving health outcomes for mothers and children living in poverty. This Pay for Success initiative will expand Nurse-Family Partnership, an evidence-based home-visiting program that pairs vulnerable first-time mothers with specially trained nurses to support healthy pregnancies and positive child development.

“This innovative program is going to allow us to improve the health of our children and families, and it’s a perfect example of what we can do when leaders from the private sector and public service work together.”

– Governor Nikki Haley

Nurse-Family Partnership has a forty year track record of positive impacts on mothers and children. This project will expand services to 3,200 first-time, low-income mothers across the state over the next six years– making it the first statewide Pay for Success initiative in the country.

Connecticut Family Stability

In Connecticut, Governor Dan Malloy, Department of Children and Families Commissioner Joette Katz and White House National Drug Control Policy Director Michael Botticelli announced the “Connecticut Family Stability Pay for Success Project.”

“We in Connecticut are continuing to innovate, with new funding mechanisms to tackle complex issues. The world is changing, and the way we approach funding critical services must change with it. It’s critical that we focus on outcomes — and Pay for Success financing assures that we only fund programs that work. This is about providing effective treatment services early — it’s a strategic approach in order to keep children with their families. This is the right thing for Connecticut children and families and the right thing for Connecticut taxpayers.”

– Governor Dannel Malloy

The project will serve 500 families struggling with substance abuse by expanding Family-Based Recovery over the next four and a half years. Developed at the Yale Child Study Center, Family Based Recovery is an intensive, in-home parent-child attachment program for families with young children at risk for abuse and neglect, poor development outcomes, and removal from the home due to parental substance use.  The program works to promote positive parent-child interactions for secure attachment, and to help parents achieve and maintain abstinence.


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