PLY: The US Federal Government looks to explore PFS:
‘Pay for Success’ Arrangements Worth Exploring, GAO Says
FED Week
Federal agencies could benefit from exploring “pay for success” contracting arrangements being tested at lower levels of government, in which the government pays an investor, usually with a rate of return, based on savings from decreased use of more costly services, GAO has said.
GAO examined 10 such projects and found that they offer potential benefits to all parties involved. “For example, governments can implement prevention programs that potentially lead to reduced spending on social services and transfer the risk of failing to achieve outcomes to investors.”
It said that federal government involvement in such projects “has been limited” even though OMB has encouraged agencies to explore them.