Doctoral Dissertation Research: The Effect of Pay for Success Models on Social Service Provision

Regents Of The University Of Michigan - Ann Arbor, Ann Arbor MI

Investigators

Abstract

This project examines how policy makers develop and implement hybrid models of social service provision. Specifically, this project studies how Pay for Success (PFS), a public-private model for social programs, shapes state spending on specific populations in the United States. Under a PFS contract, private investors provide initial funding for a public program, which the government repays only if the program proves successful. The PFS model promises to meet citizen needs while minimizing costs, but it is not yet clear who benefits from these programs, who is left out, and how these decisions are made. This project aims to determine (1) whether the goals of PFS projects influence which populations ultimately benefit from these projects and (2) the consequences of the PFS model for the scope of social provision more broadly. Findings from this study will be useful to policymakers and public advocates as the implementation or modification of PFS programs is considered, and so will contribute to the general public well-being. The analysis employs a comparative case study design to assess the effect of PFS structure on beneficiary populations across three social service domains. Data collection will be via interviews with public and private actors involved in the design and implementation of PFS programs. Two sets of comparisons will be made: (1) comparisons between PFS proposals that matriculate into social programs and PFS proposals that fail to launch; and (2) comparisons between PFS-structured social programs and traditional social programs within specific issue areas. The case comparisons will illustrate the relationship between the PFS models' cost-savings structure and the populations the model ultimately serves. They will also elucidate the ways in which the PFS model differs from traditional models of service provision in terms of cost and scope. In evaluating these outcomes, this project will contribute to research on public policy and public-private models of social service provision. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.