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Payment by Results

The 3rd Commandment of Payment by Results: Thy metrics shall be simple

Complexity is almost always the enemy of effective PbR because it inevitably results in unintended consequences. Concern about possible unintended consequences results in worries about gaming the system which, equally inevitably, results in additional measures being taken to address these concerns which involves further complexity which…, well, you get the picture. In this post, I want to make the case for simple, robust measures to assess how effective PbR schemes are in meeting their outcomes.

Payment by Results

Complexity and transparency: Thoughts on the MoJ Straw Man Payment Mechanism

It’s great to be able to engage in the development of the MoJ’s proposed payment mechanism. However, the first thing that struck me was its complexity. Clearly a great effort has been made to design a mechanism that creates the right incentives to develop innovative ways to reduce reoffending. Will it be sufficiently transparent to stimulate the wide range of providers needed achieve real innovation or does it favour those with the deepest pockets, who can afford to do the detailed analysis necessary to truly understand the risks inherent in such rehabilitation contracts?

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