Performance Based Financing: An international review of the literature

In this literature review, we will explore incentive based approaches adopted in developing countries over the past decade, with a focus on the contribution of Performance Based Financing (PBF) to productivity, quality of health care and ultimately on the performance of health providers. Section One outlines the various definitions that are applicable to a wide range of performance based incentive schemes. Section Two reviews the institutional approaches that have been deployed by NGOs in collaboration with country level stakeholders, with a specific focus on the costs of introducing PBF using diverse operational approaches. Section Three explores the results that have been reported including both quantitative and qualitative effects on health service delivery and human resources. Section Four identifies the monitoring and evaluation tools that have been used to measure the results of PBF. Section Five offers a concluding summary with a proposed research agenda for future work.