IMP'LEMENTATION OF CONTROL IN CONTPACTING FOR HUMAN SERVICES

States have adopted purchase-of-service contracting for a wide variety of human services, and as much as two-thirds of Title XX funds may be spent through purchase of services. The prcmise of purchased services- many small providers delivering a variety of services in innovative ways at lower cost and higher quality than state delivered services- has not been met. To examine this failure, this study looked at the interrelationships and the effects on the provider market of several control mechanisms which are or could be used by state agencies to shape provider behavior. Two states which exhibited very different provider markets were used as case studies. Actual use of control mechanisms was compared to potential use, and explanatory reasons were found for the shortfall between actual and potential use. Implementation models were also used to provide a more general framework in which policies, such as purchase of service contracting