This Policy Research Working Paper published by the World Bank reports on a study that examines the impact of Pay for Performance (P4P) on maternal and child health services in Rwanda. It uses data produced from a prospective quasiexperimental evaluation design nested into the P4P program rollout. P4P had a large and significant positive impact on institutional deliveries and preventive care visits by young children, and improved quality of prenatal care.
Not only is this among the first rigorous evaluations of P4P in a low-income setting, it is the first to isolate the impact of P4P incentives from the associated increase in resources.
P4P can affect health care by providing incentives for providers to put more effort into specific activities, and by increasing the amount of resources available to finance the delivery of services.