Traditionally funding for health has been directed towards inputs like salaries, construction, training and equipment. People thought that improved health care would follow but this hasn’t always been the case. The new system of performance-based financing turns the old logic upside down and focuses on improved performance.
Examples of performance targets could be ‘number of fully immunized children’ or ‘number of deliveries well managed’. These target will be verified on a quarterly basis.
By turning away from focusing attention on inputs, performance-based financing aims to improve health system efficiency and effectiveness. The allocation of financial resources is linked to achieving defined performance targets. By doing this, health providers at a district and local level will gain more autonomy and decision-making power. Managers, doctors and nurses will become responsible for their own performance which is a higher incentive to satisfy their patients. They can set their own priorities according to the needs on the ground and will receive the spending autonomy to back up their choices.
“With the help of result-based financing we have been able to reduce our patient fees. This has made health care more accessible for the community,” explains sister Martina, midwife in Saint-Francis health centre III in Arua district.
Sister Martina, midwife in Saint-Francis health centre III in Arua district