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Performance Based Financing. Principles and Practices. Cordaid Postal Box 16440, 2500 BK The Hague Lutherse Burgwal 10 2512 CB The Hague Netherlands www.cordaid.nl. Piet Vroeg Program Officer Department of Health and Well being T: +31(0) 703136522 F: +31(0) 703136511

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principles and practices

Performance Based Financing

Principles and Practices

Cordaid

Postal Box 16440,

2500 BK The Hague

Lutherse Burgwal 10

2512 CB The Hague

Netherlands

www.cordaid.nl

Piet Vroeg

Program Officer

Department of Health

and Well being

T: +31(0) 703136522

F: +31(0) 703136511

[email protected]

Performance Based Financing

slide2
Our Profile
  • Dutch development organisation
  • 80 years emergency aid and structural development;
  • Almost 1000 partners in 36 countries in Africa, Asia, Latin America, Central and Eastern Europe ;
  • Annual budget 170 million Euro;
  • Solid base in the Netherlands: 370.000 contributors,
  • Rooted in the catholic missionary tradition (Caritas, Medicus Mundi).

Performance Based Financing

slide3
Why PBF?
  • Principles
  • Rwanda Pilot
  • Scaling Up
  • Expectations
  • Challenges

Performance Based Financing

slide4

Hospital Miblizi Rwanda

Performance Based Financing

why pbf
Why PBF?
  • Rwanda 2002 :
  • Despite huge investments in the Health Sector;
  • Health Indicators did not improve.
  • “The system was able to absorb but not to produce”
  • Response: Introduction of Performance Based Financing

Performance Based Financing

slide6
Principles

Performance Based Financing

the principles
The Principles
  • More than a contract:
      • Separation of Functions
      • Inclusion of the Private sector (non-profit and for-profit)
      • Community Participation and Verification

Performance Based Financing

separation of functions

Regulator

Supervision

Legislation

Provider

Consumer

Purchaser

Negotiation

Separation of Functions

Performance Based Financing

separation of functions9
Separation of Functions
  • The regulator controls for the quality of the inputs and processes
  • The purchaser verifies the outputs and pays a fee for service;
  • Autonomous provider some key decision rights;
    • Incentives to staff
    • Hiring and Firing
    • Procurement of Medicaments and Material
    • Investment in Infrastructure

Performance Based Financing

inclusion of private sector
Inclusion of Private Sector
  • All capable providers should have access to a performance contract either directly or with a subcontract
    • Increase geographical access
    • Separation of the good from the bad
    • Increase competition between health facilities
  • Think about: Private Practitioners, Village Health Workers, Traditional Birth Attendants, NGO’s (hiv/aids)

Performance Based Financing

community participation
Community Participation
  • High level of community participation contracting:
  • Health Committees (co-management)
          • To increase transparency
          • To increase access for the most vulnerable
      • Local Associations (audits and feedback)
          • To increase accountability
          • To increase relevance/satisfaction

Performance Based Financing

slide12
Rwanda Pilot

Performance Based Financing

pilot profile 1
Pilot Profile (1)
  • The pilot started in 2003 in four health districts of the former Cyangugu province (now Western Province) and was taken over by MoH on 1st January 2006
  • Initially funded by the Dutch Ministry of Foreign Affairs
  • Catchment area 630.000 people
  • Total Investment 3,000,000 USD
  • Investment pppy 1.65 USD
  • Transaction costs 25% in 2005

Performance Based Financing

pilot profile 2
Pilot Profile (2)
  • Purchaser contracted:
    • 4 Hospitals
    • 24 Health Centers
    • 4 District Health Teams
    • 24 Local associations
  • Health Centers sub-contracted:
    • 20 Private Dispensaries
  • and initiated
    • 14 Health Posts

Performance Based Financing

monitoring and evaluation
Monitoring and Evaluation
  • Monthly Monitoring of Utilization (purchaser)
  • Quarterly Monitoring of Quality HC (regulator)
  • Quality Review System Hospitals (peers)
  • Quarterly Verification and Satisfaction Surveys
  • (local community associations contracted by purchaser)
  • Household Surveys (2003 and 2005) (project consultant)
  • End of Project Evaluation (external consultants)

Performance Based Financing

results utilization
Results (Utilization)

Performance Based Financing

results quality
Results (Quality)

When looking at the 3-year averages, the overall total quality index for the province was 74.1%, with a range from 66% - 88.5% over the HCs. However some of the outliers are huge jumping from 20%-90%

Performance Based Financing

results financial access
Results (Financial Access)

Difference in price paid for service between 1st and 10th survey by local associations (FRw)

Changes in Financial implications of illness according to Household surveys 2003-2005

Performance Based Financing

slide19
Scaling Up
  • or Rolling Out

Performance Based Financing

pilots
Pilots
  • Until now most PBF initiatives have started by an NGO.
  • There seems to be a pathway of growth
    • Small seed projects with a limited number of services financed with proper funds and executed with traditional partners
    • Pilot projects that cover one or more zones/districts/provinces with a population of minimum 300.000 people, financed by external donors such as Dutch Ministry of Foreign Affairs, European Commission, Norad and WB ).
    • National roll out of the initiative by the government with funding through a consortium of various multilateral and bilateral donors sometimes including “vertical donors” (PEPFAR, GAVI)

Performance Based Financing

overview
Overview
  • Rwanda 2003
  • RDC 2005
  • Tanzania 2006
  • Zambia 2007
  • Burundi 2007
  • CAR 2010
  • Cameroon 2010?

Performance Based Financing

issues
Issues
  • How to institutionalize the new Purchaser?
  • How to timely pay the provider?
  • How to collect and verify information in a cost effective manner?
  • In how far is civil society allowed to participate?
  • Is the private sector eligible?

Performance Based Financing

purchaser
Purchaser
  • The Purchaser can fulfill several crucial functions:
      • Holding the contract
      • Verification of quantity
      • Control of quality
      • Audit
      • Coaching/Supervision
      • Payment

Performance Based Financing

rwandan pilot
Rwandan Pilot

Government

Ministry of Public Health

Ministry of Interior

Provincial Hospital and Inspection

Province

Contract

Payment

Verification

Coaching

District Hospital and Inspection

Districts

Health Center

Village

QC

Audit

NGO

TBA

Provider

Health Committee

Population

Church

VHW

Insurance

Performance Based Financing

rwanda national system
Rwanda National System

Government

MoF

Payment

Ministry of Public Health

Ministry of Interior

Provincial Hospital and Inspection

Province

District Hospital and Inspection

Districts

QC

Supervision

Health Center

Village

Audit

NGO

TBA

Provider

Health Committee

Population

Church

VHW

Insurance

Contract

Verification

Performance Based Financing

drcongo south kivu pilot
DRCongo South Kivu Pilot

Goverment

Ministry of Public Health

Ministry of Interior

Provincial Hospital and Inspection

Province

District Hospital and Inspection

Districts

Contract

Payment

Verification

Supervision

Health Center

Village

Audit

QC

NGO

TBA

Provider

Health Committee

Population

Church

VHW

Insurance

Performance Based Financing

burundi roll out
Burundi Roll Out

Government

Ministry of Public Health

Ministry of Interior

Provincial Hospital and Inspection

Province

Contract

Payment

District Hospital and Inspection

Districts

QC

Supervision

Health Center

Village

Audit

NGO

TBA

Provider

Health Committee

Population

Church

VHW

Insurance

Verification

Performance Based Financing

expectations
Expectations
  • More efficient (lower user fees)
  • More production
  • Higher Quality
  • Better geographical access
  • Stronger Consumer Participation
  • More inclusion
  • Less Morbidity
  • Better Health

Performance Based Financing

challenges
Challenges
  • Access for the most vulnerable (inclusiveness)
  • Macro-financing (sustainability)
  • How to adapt to different contexts (flexibility)
  • How to deal with volatile situations (resilience)
  • Integration Vertical Programs
  • Community Participation

Performance Based Financing

get for what you pay
Get for what you pay

Performance Based Financing

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