Pay for Success is an innovative funding model centered on the concept of performance based contracting between government entities and social service providers. Traditionally, government entities pay social service providers for an agreed upon service, regardless of the outcomes. Pay for Success differs from this standard in that, government entities only make payments if the contracted service providers achieve an agreed upon level of social outcomes.
In 2012, The Health Trust contracted Third Sector Capital Partners to work with the County of Santa Clara and the local nonprofit community to identify potential areas where Pay for Success could be applied. Thanks in large part to the County’s receptivity to Pay for Success, progress has been made in adopting this innovative funding model. You can learn more about Pay for Success and its early stages in Santa Clara County, by reading the following report:
In 2015, Santa Clara County and The Health Trust, along with numerous philanthropic funders, launched California’s first Pay for Success project, Project Welcome Home. Project Welcome Home will provide housing and supportive services for the chronically homeless and aims to improve quality of life and reduce reliance on costly government services. It has received $6.9 million in upfront funding from private and philanthropic funders. Funders include The Sobrato Family Foundation, The California Endowment, The Health Trust, The Reinvestment Fund, Corporation for Supportive Housing, The James Irvine Foundation, and Google.org.
Project Welcome Home Resources
To learn more about The Health Trust’s Pay for Success work, contact Grants@healthtrust.org.