The New Hampshire financing policy.

OBJECTIVE

This study sought to describe the New Hampshire incentive financing policy and report on its results over the first seven years.

METHODS

The description of the policy was based on reviewing state documents and interviews with state officials. The data were obtained from state records.

RESULTS

On the targeted outcomes of employment and psychiatric hospitalization the statewide improvement was dramatic. The service system concurrently became more efficient.

CONCLUSION

The results suggest the incentive financing based on client outcomes may be a potent state strategy for improving service system performance.