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Financing Population Health Improvement: Workshop Summary.
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Roundtable on Population Health Improvement; Board on Population Health and Public Health Practice; Institute of Medicine.
Washington (DC): National Academies Press (US); 2015 Jan 6.
ContentsHardcopy Version at National Academies Press
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5Pay-for-Success Financing and Population Health
Continuing the theme of finding creative ways to finance population health and align incentives to focus on performance, the workshop's third panel discussed a relatively new approach that is being put into action to fund population health: using social impact bonds to provide capital in a scheme known as pay-for-success financing. Social impact bonds allow philanthropic funders and private investors to pool capital for social programs, with the loans repaid by the government only if the funded initiative achieves agreed-on results. Megan Golden, a fellow at New York University Wagner School's Innovation Labs and the Institute for Child Success, provided an overview of the role that pay-for-success financing can play in population health. Robert Dugger, founder and managing partner of Hanover Provident Capital, LLC, and Rick Brush, founder and chief executive officer of Collective Health, then gave their perspectives on this new approach to financing population health and discussed examples of how it has been used so far. The presentations were followed by an open discussion period, moderated by Andrew Webber, a member of the workshop planning committee and chief executive officer of the Maine Health Management Coalition.
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