bridges ventures presentation social investment (in partnership with core assets)

Better Outcomes, Better Value

NCASOctober 2015

Children’s

Services

Youth

Homelessness

Youth

Unemployment

Health and Social

Care

Bridges Social Impact Bond FundPortfolio overview – Responding to social challenges

Bridges Social Impact Bond Fund14 social impact bonds, delivered by 22 impact focused organisations

How Outcomes Contracts Work

Outcomes-based

contract

Government High-impact intervention

External provider

How Social Impact Bonds Work

Outcomes-based

contract

Government High-impact intervention

External provider

InvestorsPays for

successful outcomes Provides working

capital/support for

Youth Unemployment

Children’s Services

Youth Homelessness

Health and Social Care

Why Use Outcomes-Based Contracts

Outcomes-based contracts can help Government achieve better results and better value-for-money

• Improve efficiency of delivery by incentivising providers to focus on results

• Improve spending effectiveness by paying directly for outcomes

• Increase flexibility for providers by focusing on the ‘what’, not the ‘how’

• Increase visibility by obtaining detailed, granular data on outcomes and costs

• Save money over time by investing in preventative services

• Improve integration of services by focusing on the social outcomes needed

The Government:

How Outcomes-Based Contracts Work

Identify cohort in

need of help

Specify desired

outcomes

Establish value of

outcomes

Create an outcomes contract

Select a provider

The service provider:

How Outcomes-Based Contracts Work

Bid for the contract

Raise working

capital (if needed)

Deliver services

Social Investors:

Working capital

Delivery support

Continuous learning to

achieve outcomes