State medicate agency South Carolina Department of Health and Human Services
Umbrella Centers For Medicare and Medicaid Services
Notes SCDHHS, which is the state’s Medicaid agency, decided to pursue a Pay for Success project and launched a procurement process. The state initially determined that Medicaid would be an appropriate funder since research substantiates the NFP model’s effectiveness, including projected reductions to Medicaid costs associated with improved health outcomes. However, Medicaid cannot typically be used to pay for the infrastructure required to expand healthcare services. As such, the state decided to pursue a combination of Pay for Success and Medicaid financing as a balanced strategy to finance NFP expansion, with Pay for Success dollars used to expand the program and Medicaid funds used to finance the services provided.