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Infographics

PbR jargon demystified (2) G-L

Second in a series of infographics which demystify the jargon and technical terms associated with the payment by results commissioning model.

Payment by Results

Designing payment by results schemes (NAO 4)

The NAO cautions that in designing PbR schemes, commissioners need to get the balance between pure PbR and non PbR payments right. Where a scheme is financed by a Social Impact Bond, it may be possible – and indeed appropriate – to stipulate that 100% income is dependent on achieving the specified outcomes.

On Probation

Paying for the wrong results?

The MoJ published their initial payment mechanism for the Transforming Rehabilitation contracts back on 3rd June and asked for feedback. They are currently developing a final version which should be published before the procurement process starts – scheduled for 23rd August. Last week, the Social Market Foundation published a paper by its director Ian Mulheirn which analysed the payment mechanism in forensic detail and came up with the devastating conclusion that : The payment mechanism encourages providers to cut spending on services and allow reoffending to drift marginally upwards.

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