Long, and successful, experience of working with Payment by Results (PbR) contracts has taught Community Links several key lessons. These form the basis of a new 9 page policy briefing available (in pdf 243KB) via http://www.community-links.org/linksuk/?p=4697.
They highlight three main issues which need to be addressed for such contracts to work well:
- Contract financing needs to be carefully addressed.
- The size and structure of PbR contracts can determine the role that different organisations play.
- PbR contracts risk forcing providers to focus on a narrow range of outcomes rather than working holistically.