The Payoff of Pay-for-Success

V. Kasturi  Rangan; Lisa  Chase

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Article | Stanford Social Innovation Review

The Payoff of Pay-for-Success

by V. Kasturi Rangan and Lisa Chase

Abstract

Pay-for-success contracts also known as social impact bonds, have been widely touted as a clever way to fill the funding gap plaguing social programs by attracting a tranche of the trillions of dollars in private return-seeking capital. This article takes an in-depth look at the evidence from the first seven contracts in the U.S., to conclude that although that scenario is not likely, the pay-for-success model will have a positive impact, just not in the way that many proponents think.

Keywords: impact investing; social impact bonds; public innovation; social enterprise; Social Enterprise; Investment; Innovation and Invention;

Format: Print

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Citation:

Rangan, V. Kasturi, and Lisa Chase. "The Payoff of Pay-for-Success." Stanford Social Innovation Review 13, no. 4 (Fall 2015): 28–36.

About the Author

V. Kasturi Rangan

Malcolm P. McNair Professor of Marketing

Marketing

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Case | HBS Case Collection | March 2019 (Revised November 2019)

Gilead: Hepatitis C Access Strategy (A) (Abridged)

V. Kasturi Rangan, Vikram Rangan and David E. Bloom

Gilead had come up with an innovative drug for Hepatitis C, which affected 180 million people worldwide. The drug was priced at $1,000 a pill for the US market. Gilead had to decide how to price and market the pill in developing countries that bore the brunt of the disease. The company had earned accolades for its work in HIV/AIDS, where its innovative medicines now accounted for 60% of all patients on Anti-Retroviral (ARV) medicines. Much of this was accomplished through generic licensing, which brought a $10,000/year treatment regimen down to $100! Should the company replicate that strategy for Hepatitis C? If so, how would its US Healthcare customers, who were paying $84,000 per patient, react? On the other hand, Gilead had to balance the interests of its shareholders, who paid $11 billion for an acquisition that led to the new Hepatitis C drug.

Keywords: healthcare; Pharmaceuticals; pricing; Access to care;

Citation:
Rangan, V. Kasturi, Vikram Rangan, and David E. Bloom. "Gilead: Hepatitis C Access Strategy (A) (Abridged)." Harvard Business School Case 519-077, March 2019. (Revised November 2019.) View Details

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Supplement | HBS Case Collection | October 2019

Gupta Media: Governors Ball Ad Spending and Ticket Sales Data

V. Kasturi Rangan and Courtney Han

Citation:
Rangan, V. Kasturi, and Courtney Han. "Gupta Media: Governors Ball Ad Spending and Ticket Sales Data." Harvard Business School Spreadsheet Supplement 520-706, October 2019. View Details

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Supplement | HBS Case Collection | October 2019

Gupta Media (B) Supplement: Governors Ball Overview and Promotional Materials

V. Kasturi Rangan and Courtney Han

Citation:
Rangan, V. Kasturi, and Courtney Han. "Gupta Media (B) Supplement: Governors Ball Overview and Promotional Materials." Harvard Business School Supplement 520-039, October 2019. View Details

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The Payoff of Pay-for-Success

Abstract

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