what is results-based financing?
DESCRIPTION
A presentation by Bruno Meessen, delivered during "Transforming Health Systems Through Results-Based Financing," an event held during the Third Global Symposium on Health Systems Research in Cape Town on September 30, 2014.TRANSCRIPT
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What is RBF?A paradigm shift for health systems in low-income countries
Cape Town – 30th September 2014
Bruno Meessen, Institute of Tropicale Medicine, Antwerp & Lead facilitator of the PBF Community of Practice
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Observation 1:Health: outcome of a co-production process
Governments / agencies
Providers
Households / users
Other stakeholders
Good health
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Observation 2:It is about behaviors – incentive matters
Source: Bertone & Meessen 2013
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Different RBF strategies
Governments / agencies
Providers
Households / users
Other stakeholders
Good health
Cash on delivery
Performance Based Financing
Conditional cash transfer
Voucher for CSW
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• A virtual group of 1,500+ experts
PBF: an African community of experts
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Countries will :
• “Improve efficiency in health systems (…) including the introduction of measures such as results based financing (RBF) and incentives to enhance transparency and performance and reduce wastage”
(Tunis Declaration, 2012)
PBF: an African agenda
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PBF = a reform of provider paymentNumber provided
Unit price($)
Total earned($)
Child fully vaccinated 100 5 500
Skilled birth attendance 20 10 200
Curative care <5 years 1,000 0.5 500
Total before correction 1,200
Remoteness Bonus + 50% 1,800
Quality correction x 60% 1,080
$1,080 available for:• Health facility operation costs (supplies,
maintenance, outreach etc) – about 40% of funds• Performance bonus to health workers – about 60% of
funds
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… but also dares to reform the health sector
Output payment & strategic
purchasing
Contract & enforcement
Separation of functions
ICT
Direct transfer of
funds
Autonomy
Performance is defined
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PBF is about efficiency
Efficiency : – Allocative efficiency: Funding is targeted on cost-effective
interventions – Technical efficiency: strong incentive for greater effort,
better management, innovation. – Transactional efficiency: concern for low transaction costs
(eg. direct transfer to health facilities).
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PBF improves equity & accountability
But can also improve• equity:
– formula to target specific groups (e.g. Burundi) or geographical areas.
• transparency and accountability: – Stress on verification– Possible to benchmark performance– Transparency of funding flows
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• Real SWAp• Public finance reform• Public sector reform• New approach to decentralisation in the health
sector• Integration of the private sector• New ecosystem enhancing effectiveness of
other interventions
PBF – many spill-over effects
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PBF = a health system strengthening strategy focused on results.
Conclusion