Social impact bonds, also called "Pay for Success" initiatives, are an innovative finance mechanism through which investors provide the funds for organizations to provide social services at the request of a government entity. These investors may be repaid, with interest, depending on the organizations' success in achieving specified outcomes. The most noteworthy examples to date involve pay-for-success schemes to reduce recidivism in the UK, Massachusetts, and New York City prisons. Santa Clara County will soon issue a request for proposals for a social impact bond to reduce the hospitalization of mentally ill patients at the Santa Clara Valley Medical Center. It has retained Third Sector Capital Partners as an advisor and Keith Humphreys, Ph.D., Professor and Section Director for Mental Health Policy in the Department of Psychiatry and Behavioral Sciences at Stanford University, as the evaluator. Students in this Policy Lab practicum will work with Dr. Humphreys, the Santa Clara County Counsel's Office, and Third Sector to develop the scheme, including designing clear metrics for success and undertaking a cost-benefit analysis of the de-institutionalization of mental health patients. It is likely that we will collaborate with faculty and students from other schools and departments having particular expertise in cost-benefit analysis and evaluation. Special Instructions: Total enrollment in this course will be limited to 12 (4 SLS students, 4 Medical School students & 4 other). A preference will be given to students who can enroll for both the Autumn and Winter quarters. NOTE: Students may not count more than a combined total of eight units of directed research projects and policy lab practica toward graduation unless the additional counted units are approved in advance by the Petitions Committee. Such approval will be granted only for good cause shown. Even in the case of a successful petition for additional units, a student cannot receive a letter grade for more than eight units of independent research (Policy Lab practicum, Directed Research, Senior Thesis, and/or Research Track). Any units taken in excess of eight will be graded on a mandatory pass basis. For detailed information, see "Directed Research/Policy Labs" in the SLS Student Handbook. CONSENT APPLICATION: To apply for this course, students must complete and e-mail the Consent Application Form available on the SLS Registrar's Office website (see Registration and Selection of Classes for Stanford Law Students) to the instructors. See Consent Application Form for submission deadline. Cross-listed with Psychiatry (PSYC 213).