Publication

This brief discusses the idea of allocating health funding according to output rather than input. Traditionally, donors have paid for inputs such as doctors' salaries or medical equipment. Performance incentives offered to health workers, facility managers, or patients turn the equation on its head: they start with the performance targets and let those most directly affected decide how to achieve them. Funders pay when health providers or patients reach specified goals. This paper reviews evidence showing that such incentives can work in a variety of settings. But, it argues, making them effective requires careful planning, implementation, and monitoring and evaluation.