New Delhi, March 28, 2011—IFC,
a member of the World Bank Group, and the Bill and Melinda Gates Foundation
are working with the government of Bihar state to find ways to make government
payments to health workers and health beneficiaries more efficient, transparent,
and timely.
Government officials, health practitioners,
banks and service providers discussed the findings of a statewide study
of the payment processes associated with state health programs. The study
recommends that health records be maintained in a centralized system called
the Health Operations Payment Engine (HOPE). Such a system would provide
a variety of benefits—not only to health workers and beneficiaries but
also to the state.
For example, to help achieve the objectives
of health programs, the state would be able to compute incentive payments
according to program guidelines. The HOPE system would also provide an
integrated platform that would allow payment service providers and banks
to credit incentive payments directly into the accounts of beneficiaries,
health workers, and private health care providers.
“Efficient, transparent, and accountable
payment mechanisms are needed to enforce program guidelines, specifically
ones relating to phased payments for beneficiaries,” said P.K. Pradhan,
Special Secretary and Mission Director of India’s National Rural Health
Mission. “IFC’s proposed solution, HOPE, should be taken beyond Bihar
to other Indian states."
Jennifer Isern, IFC’s Head of Financial
Sector Advisory for South Asia said, “With this proposed solution that
will ensure timely, accurate payments, IFC hopes to bring much-needed health
support closer to those who need it most. Our diagnostic in Bihar identified
key opportunities to improve health payments that could be expanded across
India.”
The study, conducted over three weeks
in five state districts, was led jointly by IFC, the World Bank, the Gates
Foundation, and Bihar’s State Health Society. It included interviews and
focus-group discussions with more than 285 people including health officials
at the state, district and block levels, health workers, health program
beneficiaries, private providers, technical experts, development organizations,
and financial service providers.
About IFC
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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