News from South Carolina and its programme for premature birth health improvements.
Social Impact Bonds Matter A Lot In Public Health
Michael Ollove – Governing
South Carolina is turning to an unusual source to finance a new program intended to reduce the state’s high rate of premature births: private investors.
If the program succeeds in reducing that rate among Medicaid beneficiaries, and reduces state spending as a result, the state will repay the principal plus a yet-to-be determined rate of return. If the program doesn’t meet expectations, the state will owe the investors less or even nothing at all.
The state sees the plan as a way to launch a promising health program without having to bear the costs for years to come, if ever.