Traditional Pay For Success initiatives engage private investors to fund proven interventions that create savings for federal, state, county or local public agencies. Based on the savings secured, investors can receive principal plus interest. This has the potential of creating a new market for investing in health that sustains interventions that are often best defined as upstream social determinants of health---where currently we focus less than 3% of our $2.7 Trillion healthcare costs. There is now foundational work being proposed on a Pay For Success project focused on reducing asthma emergencies in children where the cost of the intervention at $3,800 per household in Alameda County. It is expected to reduce the likelihood of a hospitalization by 50% which costs on average in California $21,433 for children age 5 - 17. California Breathing reports that the in 2010 alone, 11.6% of people with asthma were rehospitalized and that total charges in California for repeat hospitalizations were $155.6 Million.
Are you convinced that a Pay4Success initiative aimed at chronic health care is a viable strategy for improving quality of life and reducing health care costs?