Keep up-to-date with drugs and crime

The latest research, policy, practice and opinion on our criminal justice and drug & alcohol treatment systems
Search

The 10 (updated) Commandments of Payment by Results

An updated set of principles for commissioning by payment by results based on a substantial review of the most recent research.

Share This Post

An evolving evidence base

Legend has it that Moses had to come down from Mount Sinai twice with the 10 Commandments —- having smashed the first set in anger at the sinning Israelites.

The bible says that the second version was identical to the first.

By contrast, my original 10 Commandments of Payment by Results have not proved to be so set in stone.

I created the first list of what is essentially 10 principles for PbR commissioning in 2013. However, earlier this year, I embarked on a large project for the Oak Foundation developing an interactive PbR tool to help commissioners, investors and providers think through the key issues associated with a PbR contract.

As part of that work, I undertook a substantial literature review (free to download here) which has prompted me to update my original key principles. One of the interesting features of the lit review was the surge in PbR research, of the 93 studies I reviewed, 59 had been published in 2013 or later. We still don’t have a clear indication of whether PbR as a model works or not; but we have a much better understanding of the factors which make some schemes successes and others failures.

If you are thinking of using PbR to commission a service or considering bidding to provide a service under a PbR contract, I hope you will find the infographic below useful.

Share This Post

Related posts

Payment by Results
The 9th Commandment of Payment by Results: Thou shalt join up commissioning

If successful recovery from addiction can only be achieved by a coordinated approach across the health, drug treatment, criminal justice, housing, social care and ETE (employment, training and education) sectors, which government departments should pay for which outcomes? Ideally the Ministry of Justice, Department of Health, DWP and Supporting People should all contribute to a pooled budget. But of course that’s not the way that departmental budgets work – indeed, there’s evidence that, despite the Community Budgets initiative – departmentalitis has actually got worse over recent years in the face of largescale and repeated cuts in expenditure.

Payment by Results
The 8th Commandment of Payment by Results: Thou shalt share the fruits of thy labours

By focusing on outcomes, commissioners allow providers to design the service in any which way they choose – safe in the knowledge that they will only have to pay out if that service is successful. This “Black Box” approach has become increasingly contentious since the advent of the Work Programme and the introduction of large private companies into the delivery of public services. One of the key reason underlying the choice of the Work Programme contract areas was the desire to introduce direct competition between providers…

Payment by Results
The 7th Commandment of Payment by Results: Thou shalt promote innovation

Payment by results is supposed to be all about innovation. The central idea of PbR is that commissioners set their outcomes and only pay up if the provider achieves them. This leaves providers free to deliver the service in any way they see fit.
The freedom from constant monitoring and reporting on targets, milestones, KPIs etc. enables providers to approach entrenched social problems with new ideas and fresh approaches and also frees up considerable resources currently dedicated to the collection, polishing and submitting of data. But…

Payment by Results
The 6th Commandment of Payment by Results: Profit shall not be thy God

One of the most controversial aspects of payment by results in the UK has been the way the funding model has been used to outsource public services and open the market up to private providers, typically the sort of global companies who deliver the Work Programme. Many people are opposed in principle to the idea of public services generating profit for multinationals. On the other side of the argument are those that see the introduction of business sense and commercial acumen as a key way of reducing cost and driving innovation. But is financial profit the only measure of success?

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe

Get every blog post by email for free