How an intermediary model manages the tension between low contractibility and probity when outsourcing human services

Human services, such as social supports and health care, have low contractibility; services are difficult to specify measure, manage when delivered by a third party. Services can do fail, resulting in the inefficient use of public resources potential harm clients. This article develops conceptual framing using transaction cost economics (TCE) theory understand why human contract, management control how might be managed. identifies tension between contractible managed probity requirements high. is explored qualitative case study an intermediary model outsourcing, focusing on one 31 Primary Health Networks tasked commission primary care under contract Australian Government. explains design choices, making controls available different organisational contexts across model, overcame contractibility probity. adds our understanding TCE characteristic A greater this works has help policy makers service managers improve way outsourced.