Four fascinating products are chosen by Governor Cuomo of New York plus an interesting paper from Social Finance US, a perfect end to the week…
…Oh and on a personal note, ahead of the big day Monday, I know some of you may be celebrating my patron Saint’s Day Monday. As a Patrick who was blessed to be born in the island of Ireland, I wish you all a Very Happy St Me’s Day (and also pass on best wishes to those celebrating St Zbigniew’s Day in the interest of pursuing appropriate diversity policies etc…).
Have a good weekend and meanwhile happy reading:
Governor Andrew M. Cuomo today announced that four finalists have been selected for the “Pay for Success” program – also known as “Social Impact Bonds” – designed to transform how government does business while serving vulnerable New Yorkers and providing additional resources for innovative social services programs.
“New York State’s leadership in Pay for Success is another example of our focus on innovation and performance in making government work for the people of the state,” Governor Cuomo said. “This public-private partnership model is one we see working over and over again and one that saves taxpayers money and improves how we deliver services here in New York .”
Pay for Success projects are public-private partnerships where the State sets performance goals and private and philanthropic investors provide the funds for the program. The State repays investors based on the program’s performance, and only makes payments if the goals are achieved following a rigorous independent evaluation. Because effective programs help avoid expensive negative outcomes like unnecessary hospitalizations or unemployment, even at the greatest level of success the savings to taxpayers will always exceed the amount the State pays to investors.
The finalists selected follow a Request for Proposals from non-profit organizations in the child welfare and early childhood, healthcare, and public safety sectors that are responsible for raising the funding and providing the direct services for vulnerable New Yorkers. The State will enter into negotiations to launch Pay for Success projects with all four finalists pending approval of the Governor’s Executive Budget.
The following finalists were selected from 10 applications submitted in response to the Request for Proposals:
Nurse-Family Partnership: The Nurse-Family Partnership program provides nurse home-visiting services to first-time expectant, low-income mothers to improve pregnancy outcomes, child health, development, and self-sufficiency. This proposal plans to serve approximately 2,200 families in Monroe and Onondaga Counties and NYC.
Primary Care Development Corporation (PCDC) / The Institute for Family Health / Open Door Family Medical Centers, Inc. / HRHCare Community Health (HRHCare) / Hudson Information Technology for Community Health (HITCH): The National Diabetes Prevention Program aims to reduce diabetes for at-risk populations. The proposal plans to serve approximately 3,570 prediabetic patients in Westchester, Putnam, Rockland, Ulster, Dutchess, Sullivan, and Greene counties and in NYC.
Montefiore Medical Center / Children’s Aid Society: Enhanced school-based health centers would reach high-risk students with asthma care and pregnancy prevention services. The proposal plans to serve approximately 8,500 students at high schools located in the Bronx and North Shore of Staten Island.
Hillside Children’s Center: The Intensive Community Asset Program (I-CAP) provides diversion alternatives to Probation Officers and Family Court Judges for placement and detention of high-risk youth. The proposal plans to serve approximately 835 youth in Onondaga, Monroe and up to three additional counties.
New York State launched the nation’s first state-led Pay for Success project in December, for which the State’s non-profit intermediary, Social Finance Inc., raised $13.5 million to fund the Center for Employment Opportunities’ program aimed at increasing employment and reducing recidivism in Rochester and New York City.
Philanthropic institutions have been instrumental in helping to launch the SIB market both in the US and abroad. To explore this work, Social Finance has released a White Paper entitled Foundations for Social Impact Bonds: How and Why Philanthropy Is Catalyzing the Development of a New Market. Drawing on existing research and our on-the-ground experience, as well as interviews with numerous foundation staff and thought leaders, we assessed the role that philanthropy has played and will continue to play in developing the SIB market in the US.