Pomeroy, Ann
July 2007
Social Policy Journal of New Zealand;Jul2007, Issue 31, p158
Academic Journal
Funding for Outcomes (FfO) is a new approach to contracting that enables holistic services funded by several government agencies to be specified in one contract. Whereas traditional contracts reward providers' effort, integrated contracts focus on achievement - the impact of service delivery and how services contribute to improving outcomes for clients. The project has, in the words of providers interviewed for the FfO project evaluation, ‘changed the culture of contracting’ in New Zealand. The evaluation showed a general belief amongst participants that integrated contracts have introduced a range of improvements, including providers spending more time on service development and having an improved capacity to provide high-quality holistic services, meet client needs and operate more effectively. Reports are more relevant and can be used to examine the effectiveness of policy underlying government investment in services. The new approach is involving funders and providers, often for the first time, in collective contract negotiation and requires the building of strong relationships with all the parties. This gives providers a better understanding of funders' requirements and funders a better understanding of the complete service being undertaken by the provider.


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