In Ethiopia, resources for healthcare services are limited and the sector is underfinanced, leading to the risk of a lack of quality health care. To enhance the capability of healthcare service providers, Cordaid Ethiopia has implemented the performance-based financing (PBF) approach.
PBF is a financing mechanism that gives healthcare facilities and professionals financial payments based on the achievement of predetermined targets, goals or outputs after being verified for quality. In Ethiopia, PBF has successfully been piloted in Borana in mid-2015, in close collaboration with the Oromia Regional Health Bureau. After a successful implementation phase, the approach was scaled up to cover the entire Borana and in Jimma zones in 2018.
PBF works to improve accessibility and quality of healthcare for women, children and young people, regardless of who they are and where they live. It engages and empowers communities to attend to their own health needs by defining indicators in such a way that they improve healthcare services for the poorest and most vulnerable people, especially those in isolated, rural areas. In this, the needs of adolescents and young people are in particular taken into consideration.