Performance Based Financing can help to increase coverage in remote areas

There is mounting evidence that Performance Based Financing (PBF) can improve utilization and quality of health care services. In a PBF system, the way health providers are paid is not entirely input-based, but at least in part made dependent on their output (performance based). The system is increasingly embraced by international agencies and donors, including Usaid and the World Bank. We argue that universal coverage of health insurance will not, by itself, automatically improve utilization and quality of services if not linked to a method of payment to health providers that encourages performance. PBF is a method of payment that stimulates health providers to deliver more and better services. It can be applied in conjunction with health insurance. We describe the first results of a PBF project, implemented by the Dutch NGO CORDAID, and its Indonesian partner PT. Bahana, in a remote area on the island of Flores in Indonesia.

Article by EPLM Schoffelen, Haryoko and JPM Tacoy published in October 2010 on: cordaidpartners.com