Performance-Based Funding

Performance-Based Funding (PBF) is a system that allocates financial resources to organizations, such as educational institutions or healthcare providers, based on their measurable achievements or outcomes. Instead of funding being distributed equally or based on historical budgets, PBF rewards organizations for reaching specific goals, like student graduation rates or patient health improvements. This approach encourages efficiency and accountability, motivating organizations to improve their performance to receive funding. It aligns financial incentives with results, promoting better service quality and goal-oriented progress.