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Effectiveness of the Performance Based Financing Model in NGOs

Effectiveness of the Performance Based Financing Model in NGOs

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Performance-Based Funding (PBF) has become increasingly popular in global health financing. PBF is defined as the transfer of resources for health on condition that measurable action will be taken to achieve predefined health system performance targets. Due to the apparent incentives that tailored resource transfers offer, PBF is increasingly promoted by leading global actors as a way to efficiently and effectively reform the way health systems are planned, financed, co-ordinated and steered, particularly in low- and middle-income countries. The concept of PBF is premised on the notion that even though resources are limited in low income countries, it must be possible to improve the effectiveness of the health sector by increasing performance in terms of service quality, service utilization as well as improving staff motivation. Evidence from Zimbabwe points to PBF implementation as an effective way of moving low resourced countries towards achieving sustainable Development Goals.