Aligning Incentives with Outcomes to Produce Results
This chapter discusses performance-based contracting (PBC) and budgeting in public child welfare, drawing on experiences in implementing PBC in Chicago and Philadelphia. The approach incorporated research design elements, such as rotational assignment and risk-adjustment, in order to improve the monitoring of the performance of contractual service agents. Researchers relied on market-pricing systems to motivate quality improvement and to achieve budgetary efficiencies.
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