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Applying principles for outcomes-based contracting in a public health program.

Peggy A Honoré1, Eduardo J Simoes, Ramal Moonesinghe

  • 1Office of Health, Mississippi State Department of Health, Jackson, USA. Peggy.Honore@msdh.state.ms.us

Journal of Public Health Management and Practice : JPHMP
|November 24, 2004
PubMed
Summary

Outcomes-based contracting enhances accountability and collaboration in public health programs. This method links payments to results, improving funding effectiveness and fostering partnerships between agencies and contractors.

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Area of Science:

  • Public Administration
  • Health Services Research
  • Contract Management

Background:

  • Government agencies face increasing pressure to demonstrate public fund expenditure benefits.
  • Outcomes-based contracting (OBC) is adopted as a quality improvement tool for performance enhancement and results documentation.
  • OBC links payments to the achievement of agreed-upon results, focusing on impact rather than activities.

Purpose of the Study:

  • To document the implementation of OBC principles in a state health department community partnership program.
  • To assess the impact of OBC on collaboration and accountability through contractor interviews.

Main Methods:

  • Case study of OBC implementation in a state health department program.
  • Interviews with contractors participating in the OBC process.

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Main Results:

  • Contractors perceived a highly collaborative relationship with the agency.
  • OBC was viewed as enhancing accountability by focusing on results and performance targets.
  • Contractors reported more effective funding utilization by linking it with other community investments.

Conclusions:

  • OBC principles can foster collaboration and improve accountability in public health partnerships.
  • Focusing on results and providing contractor flexibility are key benefits of OBC.
  • OBC facilitates more effective integration of public funding with community investments.