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Related Experiment Videos

Funding human services: fixed utility versus fixed budget.

D J McCready, S L Rahn

    Administration in Social Work
    |December 6, 1986
    PubMed
    Summary

    Government funding for human services is inefficient when based on inputs. Shifting to outcome-based budgeting, focusing on cost-per-closed case, can improve efficiency in social and health service delivery.

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    Administration in social work·1995

    Area of Science:

    • Public Administration
    • Health Economics
    • Social Policy

    Background:

    • Current government allocations for human services often rely on input-based metrics.
    • This input-focused approach can inadvertently reduce efficiency in service provision.
    • Existing models may lead to routine allocation or political deadlock.

    Purpose of the Study:

    • To argue that input-based government allocations decrease efficiency in human services.
    • To propose an alternative budgeting system based on cost-per-closed case and outcomes.
    • To explore the interdependency between fixed budget and fixed utility allocation models.

    Main Methods:

    • The paper discusses an alternative budgeting and contracting system.
    • It examines the interdependency between fixed budget and fixed utility allocation models.
    • Simulated examples are used to demonstrate efficiency impacts.

    Main Results:

    • Input-based allocation, focusing on volume and unit cost, incentivizes inefficiency.
    • Fixed utility models, in isolation, can lead to political stalemate.
    • An integrated approach, considering both budget and utility, is crucial.

    Conclusions:

    • Government allocations for human services should prioritize outcomes over inputs for greater efficiency.
    • A system of cost-per-closed case and case outcome budgeting is recommended.
    • Program and budget review panels are key to operationalizing efficient allocation models.

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