Performance-Based Financing

Performance-Based Financing (PBF) is a healthcare funding approach where providers, such as clinics and hospitals, receive payments based on achieving specific measurable results, like improved patient outcomes or increased service delivery. Instead of funding simply based on input costs or fixed budgets, PBF rewards providers for their performance and effectiveness. This encourages quality improvements and efficiency, aligning financial incentives with health goals. Overall, PBF aims to motivate better healthcare, ensure resources are used effectively, and improve health services for communities.