Related Experiment Video
Updated: May 22, 2026

Comprehensive & Cost Effective Laboratory Monitoring of HIV/AIDS: an African Role Model
Published on: October 31, 2010
Why performance-based contracting failed in Uganda--an "open-box" evaluation of a complex health system intervention
Freddie Ssengooba1, Barbara McPake, Natasha Palmer
1Department of Health Policy, Planning and Management, School of Public Health, Makerere University, Uganda. Sengooba@musph.ac.ug
Performance-based contracting (PBC) failed due to inadequate design, poor implementation, and financial shortfalls. Improving health services requires strengthening conventional approaches rather than costly PBC interventions.
Area of Science:
- Health policy and systems research
- Public health management
- Contracting in healthcare
Background:
- Performance-based contracting (PBC) links rewards to performance targets but faces evaluation challenges.
- Black-box evaluations focus on PBC effects, neglecting the mechanisms of change, hindering policy learning.
- Previous evaluations of a PBC pilot by the World Bank and Ministry of Health deemed it ineffective.
Purpose of the Study:
- To conduct a theory-based case study clarifying why a PBC intervention failed.
- To analyze the implementation process and participant responses using complex adaptive systems and expectancy theories.
- To provide lessons for future performance-based interventions in healthcare.
Main Methods:
- A prospective case study design, tracking PBC implementation from 2003-2006.
- Qualitative data collection through participant experiences at district and hospital levels.
- Application of complex adaptive systems and expectancy theories to analyze implementation dynamics.
Main Results:
- Inadequate PBC design led to significant implementation problems and hasty adaptations.
- Health centers faced 'lock-in' due to insufficient time for target selection.
- Weaknesses in performance auditing and financial shortfalls undermined the intervention's validity and effectiveness.
Conclusions:
- PBC implementation is complex and costly, requiring substantial investment in local capacity.
- Careful consideration of actor responses and context is crucial for successful PBC.
- Strengthening conventional health system financing and management may be more viable in low-income settings.
Related Concept Videos
Methods Of Healthcare Delivery System
Managed Care System:
The managed care system is designed to control the cost while maintaining the quality of care. The patient's care from admission to discharge is planned by the primary care provider or the case manager, also known as the gatekeeper. In a managed care system, the number of care providers is limited...
Issues And Trends In Healthcare Delivery System
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
Health Information Technology and Healthcare Information System
Health Information Technology, commonly called HIT, integrates advanced information systems and technology in healthcare settings. Its primary functions include:
Primary Healthcare Services
In 1978, international leaders convened in Alma-Ata, Kazakhstan, for what would be a pivotal event in global health. The Alma-Ata Declaration was the first to call...
Secondary Healthcare System
Introduction To Health Care Delivery System
The Institute of Medicine (IOM) advocates for a patient-centered, effective, safe, timely, equitable, and effective healthcare system. The National Priorities...
