outcome-based contracts

Outcome-based contracts are agreements where payments are tied to the achievement of specific results or objectives, rather than just the delivery of services or products. For example, a company might only be paid if a healthcare provider successfully improves a patient's health, or a tech firm receives payment only if a new system performs as expected. This approach incentivizes providers to focus on delivering measurable, impactful results, aligning their success with the client’s desired outcomes. It encourages efficiency, quality, and accountability, ensuring both parties prioritize effective solutions over merely completing tasks.