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ARTICLE · 18 APRIL 2016

Authorizing Pay For Success Projects: A Legislative Review And Model Pay For Success Legislation

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Pay for Success ("PFS") is a model for deploying government resources that drives funding toward social programs that prove effective at providing results to people with the most need.

United StatesGovernment, Public Sector
Orrick
Orrick
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Article by Perry Teicher, John Grossman and Marcia Chong

Introduction

Pay for Success ("PFS") is a model for deploying government resources that drives funding toward social programs that prove effective at providing results to people with the most need. Under a PFS model, government agrees to pay for a service contingent on the program having measurable impact. If there is no impact, government does not pay. Impact funders and philanthropists provide the funds to pay for program delivery while impact is being evaluated and bear the risk that there will not be any proven impact. PFS initiatives have garnered substantial media attention, with the focus primarily on the innovation, the intervention and parties themselves.

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