Does It Pay to Pay for Success? Stakeholder Perceptions of Costs and Benefits of PFS Feasibility Studies*

Pay For Success (PFS) is a financial transaction model used by public entities to access private sector dollars to fund preventative programs for at-risk populations. If predetermined outcomes are met, government agencies pay private investors back with interest. Generally, a PFS feasibility study is conducted that investigates the issue, the target population, and potential evidence-based programs and their outcomes. If a positive return on investment is determined, partners can make a business case for entering into a PFS deal. Through interviews with thirteen stakeholders involved in feasibility studies in Colorado, the costs and benefits of participating in a PFS feasibility studies and barriers to why projects don’t move beyond feasibility are examined. Major benefits include increased collaboration between stakeholders, intense focus on a target population and their needs, increased opportunities for funding and data networks, and a focus on paying for outcomes and an opportunity for programmatic self-assessment.