On August 1, the state of Massachusetts announced the choice of two sets of partnerships to lead its work under its $50 million pay-for-performance initiative. The two partnerships will focus on juvenile recidivism and chronic homelessness respectively. Under the partnerships, the state will only pay if certain performance-based benchmarks are met.
According to the state’s press release, the juvenile justice contract “will be designed with the specific goal of reducing recidivism and improving education and employment outcomes over several years for a significant segment of the more than 750 youth who exit the juvenile justice system, and the several thousand who exit the probation system annually.”
Partners in the project include Roca and Youth Options Unlimited as providers, both of which are Social Solutions ETO customers. Third party intermediaries that will assist with financing include New Profit and Third Sector Capital Partners. United Way of Massachusetts Bay and Merrimack Valley (UWMB) is also participating in the project.
According to a story in the Boston Globe, Roca is acting as the lead provider agency.
Roca provides job training, support groups, educational counseling, and other services to keep at-risk youth from re-offending.
Molly Baldwin, the group’s executive director, said the shift to policies that reward measurable results is a refreshing change.
“We’re firm believers in outcome-based work,” Baldwin said. “If we can’t help young people change, we should do something else or not be in business, period.”
The social financing system is driven by two forces: First, new technology and data-collection efforts allow governments to more accurately measure the effects of policies; and second, the economic downturn has brought a more business-like mindset to the halls of power.
For those who are interested, Anisha Chablani, of Roca, will be presenting on a PerformWell webinar on August 14 on the basics of performance management.
The second contract targets chronic homelessness. The Massachusetts Housing and Shelter Alliance (MHSA) has been selected as the lead intermediary. MHSA is also a Social Solutions ETO customer. Provider partners will be announced in the coming weeks.
According to the Boston Globe:
State officials and the social service agencies are still working out details on the contracts, including the all-important benchmarks that will be used to determine if each agency receives full payment for its results. The contracts will stipulate that agencies which fail to meet their goals will not be fully repaid for their work.