MMS Newsforum, July 2006: Results Based Funding

Paying for Success

"The Results Based Funding (RBF) mechanism is a relatively new philosophy of provider compensation. A RBF approach compensates the provider (in this case the development service provider, be it the government, an NGO or a community organization) when program participants attain successful outcomes, rather than reimbursing the provider for the amount of services it delivers. The ultimate measure of a program’s success is not the array or number of services it provides but the extent to which it produces results needed and valued by those being served, and therefore ultimately society. Starting from May 2006, Novartis is beginning to introduce the RBF strategy, also known as the 'mandate system', into all those of its operations where it promises to increase efficiency, transparency and accountability."