Payment by results – the devil really is in the detail

PbR is simple in theory…

Payment by results is quite a straightforward concept. Its chief attraction lies in its ability to incentivise providers to deliver exactly what a commissioner wants. For example, any PbR contract concerned with reducing reoffending should ensure that organisations receive the biggest payments when they succeed in getting prolific offenders to give up crime. This saves the commissioner – the Ministry of Justice – and the country money and is to the benefit of everyone in society.
However, getting the contract right in practice is proving rather more challenging – indeed, I’ve yet to go to a PbR event where at least one speaker hasn’t said: “The devil is in the detail.”