Performance Based Finance as an Approach to Improving Health Service Delivery in Developing Countries

Bridget Jolly Tusiime (i7617749@bournemouth.ac.uk)
Department of Health and Social Sciences, University of Bournemouth, UK
February, 2017
 

Abstract



Background: Performance-based finance has been put forward as means of maximising resources in the health care sector in developing countries by reducing resource leakage and improving accountability. There is evidence about the effectiveness of performance-based finance however it is limited in scope and some of it is of questionable quality because it is written by the same people implementing the practice.

Aim: The purpose of this study was to explore the implications of Performance-Based Finance (PBF) as an approach to improving health service delivery in developing countries.

Methods: The study design used was literature review methodology. 10 primary studies were reviewed and analysed by thematic analysis. The information was then compiled in regards to PBF and its implications on health service delivery, the information was synthesised into one report and some recommendations were made.

Results: This study identified reduced absenteeism at work, increased workload, improved reporting mechanisms, high cost of implementation, increased motivation of health workers and false reporting as the implications of PBF in developing countries.

Conclusions and Recommendations: PBF has positive effects, however, it should be implemented with caution because results showed that it has a number of negative implications associated with it. Non-monetary incentives should be considered as an alternative to financial incentives and also there is a need for further research on PBF in developing countries.