New Zealand joins the SIB fold…
The government has approved a Ministry of Health pilot to test the appetite of healthcare providers and investors for social impact bonds which would only pay out on measurably improved social outcomes such as reductions in alcohol and drug use or teenage pregnancy.
The pilot follows a handful of trial schemes overseas including a 5 million pound programme to reduce recidivism at the UK’s Peterborough prison, a US$9.6 million, four-year programme to reduce reoffending among incarcerated youths at New York’s Rikers Island correctional facility, and three pilots in New South Wales of as much as A$10 million.
The New Zealand government has called for registrations of interest from social service providers for the Ministry of Health pilot. Officials are kicking off a series of market briefings in Auckland, Wellington and Christchurch next month. Health Minister Tony Ryall says a decision on the shape of the pilot could be made in the next couple of months though “it would be two to three years before we know how it’s going.”