Louisiana Outcomes Based Contracts Initiative

The FY 2020 Second Chance Act Pay for Success Initiative: Outcomes-based Contracting To Lower Recidivism and Address Substance Use Disorders Through Reentry and Housing Services Program (Pay for Success Program) is outcomes-based programming that ties payment for services to reaching agreed upon goals. Under the Pay for Success Program, services that may be purchased include permanent supportive and recovery housing, as well as other types of reentry services which are tailored to individuals leaving incarceration, particularly those with substance use disorders.

The overall goal of this opportunity is to enhance public safety, lower recidivism, and improve the lives of those coming out of the criminal justice system.

The objectives of this program are as follows: 1) enter into outcomes-based contracts to provide evidence-based, high quality recovery housing to formerly incarcerated individuals who have a substance use disorder; 2) manage the outcomes-based recovery housing contract, including data and report collection, regular metric and outcome reviews between governments and service providers, on-and off-site monitoring, outcomes validation, and incentive payment approvals; and 3)ensure government staff and service providers have adequate training on SCA OBC procurement, recovery housing, data collection, and outcomes validation.

The Louisiana Department of Public Safety and Corrections will use award funds to implement a comprehensive reentry program offering substance use treatment, recovery housing, and employment to 100-200 individuals with a substance use disorder who have been recently released from prison to the greater New Orleans area. This program will address an urgent need for additional recovery housing. During the planning period, the agency will assess the appropriate level of recovery housing, and engage service delivery partners to offer case management, substance use treatment, recovery housing, and employment supports. The agency will collaborate with Social Finance (an experienced Pay for Success intermediary with expertise in designing and implementing innovative funding tools that tie payments to the achievement of outcomes) to structure the outcomes-based contracting. Together, these groups will use the planning phase to define the terms of the outcomes-based contracting and establish infrastructure to manage performance.

CA/NCF