Pay for Performance: A New Solution for Vulnerable Homeless Adults

Pay for Performance: A New Solution for Vulnerable Homeless Adults. American Enterprise Institute. Kevin C. Corinth. April 26, 2016.

An emerging consensus has formed among advocates, nonprofit organizations, and the federal government that we have discovered the best solution for vulnerable homeless adults—Housing First. While the Housing First model has rightly been celebrated for increasing housing stability among the most vulnerable, evidence for claims that it reduces homeless populations, saves money, and improves well-being is much weaker. According to the author, there’s a need for a new solution that builds on the success of Housing First in housing the most vulnerable but also pushes progress forward on other outcomes. I propose a “pay-for-performance” system that unconditionally accepts vulnerable individuals into medium-term or long-term supportive housing, but rather than mandate a specific service model, holds service providers accountable for performance: keeping people out of homelessness, minimizing costs, and improving well-being. [Note: contains copyrighted material].

[PDF format, 10 pages, 283.6 KB].

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