'Government Only Pays for the Positive Outcomes.' A Strikingly New Approach to Social Problems
Pay for Success (PFS) projects essentially “monetize prevention” according to Tracy Palandjian, co-founder and CEO of Social Finance US. This Washington Post article describes PFS and how the model is being used in Connecticut, South Carolina, and Colorado to improve social outcomes.
“The approach recruits private companies and philanthropies to provide millions of dollars upfront for efforts aimed at difficult social problems. If they meet a series of measurable goals over a number of years, the states will pay them back with interest.”