[EQ] A Guided Tour of Concepts and Terms and a Short Glossary of Results-Based Financing RBF

Financial and Other Rewards for Good Performance or Results:
A Guided Tour of Concepts and Terms and a Short Glossary of Results-Based Financing RBF

Philip Musgrove
Results-Based Financing (RBF) for Health – The World Bank September 2010

Available online PDF [9p.] at: http://bit.ly/csUbfJ

“….Results-Based Financing (RBF) has been defined as "a cash payment or non-monetary transfer made to a national or subnational government, manager, provider, payer or consumer of health services after predefined results have been attained and verified. Payment is conditional on measurable actions being undertaken." RBF is an umbrella term because the definition is general and characterizes various programs in many countries. Different labels exist for essentially the same concept or are associated with different incentives and payment arrangements…..

 

“…..Paying for inputs, particularly paying salaries to health care providers, has two well-known virtues. Costs are predictable, apart from variations due to overtime pay and fluctuations in the quantities of variable inputs such as drugs and other consumables; and providers have no financial incentive to deliver excess services. Supplier-induced demand is not a problem.

 

However, it is just as well-known that salaried personnel, who earn the same amount independent of their output or production, also have no financial incentive to produce any more than the minimum required to stay employed. If they lack adequate non-financial incentives or motivation to do a good job in either quantity or quality, they may be tempted to produce less than is needed or deliver poor quality service. It is a fair starting point to say that anything that introduces financial or other rewards based on some definition of results represents an attempt to get away from simply paying for inputs, at least in part….”

 

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