Categories
Payment by results (PbR) is used to address complex social issues for which there are no straightforward solutions. The nature of PbR means it is most likely to succeed if the operating environment has certain features that can be measured and attributed to providers’ interventions. It is difficult to design an effective payment mechanism and forecast the level of performance that would occur without intervention, says the National Audit Office report. The report looks at the issues commissioners should consider when deciding whether or not to use PbRs.