2017 Symposium Industry Report: Pay for Success

The third stage, contract implementation, involves the implementation of the PFS project, whereby the intervention is delivered by the service provider, an evaluation is conducted, and performance is monitored. If the third-party eval- uator confirms that outcome milestones have been reached, the outcomes payor makes outcomes payments to PFS Investors. Pay for Success Project Development From January 2012 to the present, 15 PFS projects have launched in the United States. The projects have been across a diversity of social issue areas including early childhooddevelopment, foster care, substance abuse, homelessness, asthma management, child and maternal health, homelessness, criminal and juvenile justice, and the environment. Contract durations have ranged from two to seven years with upfront investments ranging from $3.5 to $30 million. Various federal, state, and local government entities, and a nonprofit have served as end payors. Investors have included institutional investors, foundations, the federal govern- ment, and other community organizations. Of the 15 launched, two projects have reported outcomes: 1.) the NYC ABLE Project for Incarcerated Youth at the Rikers Island Jail in New York, NY ended prematurely because the project was not meet- ing outcome targets, and 2.) the Utah High Quality Preschool Program, which continues to operate, reported results that triggered outcome payments. See Table 7 on the following page: Launched Pay for Success Projects in the United States.

Pay for Success & Affordable Housing | Stefano Rumi 53

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