Compare: Provider payment mechanisms

Joint Learning Network for Universal Health Coverage

The Joint Learning Network for Universal Health Coverage systematically documents the reforms of its member countries and other countries that have expanded health coverage through demand-side financing. The case studies contained in these pages are brief, comparative and modular in nature, describing the key highlights and technical features of each program.


Compare various dimensions of country reform efforts using our interactive tool.


Program Provider Payment Mechanisms Provider payment mechanisms
Mali: Mutuelles
  • Fee-for-service

In Mali, the provider payment system for all three systems is fee-for-service. The Mutuelles sign individual agreements with the care providers and reimburse them according to the payment rates under a fee-for-service system. Services are paid for directly by the CANAM and the ANAM to the providers by submitting invoices based on the national pricing system and health care services coverage rates (minus the copayment). A medical control is also included.

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In Mali, the provider payment system for all three systems is fee-for-service. The Mutuelles sign individual agreements with the care providers and reimburse them according to the payment rates under a fee-for-service system. Services are paid for directly by the CANAM and the ANAM to the providers by submitting invoices based on the national pricing system and health care services coverage rates (minus the copayment). A medical control is also included.

For the AMO and RAMED, the health institutions, dispensing pharmacies, drug warehouses, and the laboratories approved by the Ministry of Health may sign contracts with the Government Management Agency, the National Health Insurance Fund (CANAM) for the AMO, and the National Medical Assistance Agency (ANAM) for RAMED. Although an accreditation system is planned in Mali, at startup time for the AMO and RAMED, all public and community facilities were temporarily accredited until the system became operational.

Ghana: National Health Insurance Scheme (NHIS)
  • Diagnosis-Related Groups

In 2004, a memorandum of understanding regarding the services covered and prices charged was signed by the NHIC and service provider representatives. Claims are filed by the health facilities and the district schemes pay providers on a DRG basis. Typically, a reimbursement check comes 6 months after a claim is submitted.

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In 2004, a memorandum of understanding regarding the services covered and prices charged was signed by the NHIC and service provider representatives. Claims are filed by the health facilities and the district schemes pay providers on a DRG basis. Typically, a reimbursement check comes 6 months after a claim is submitted.

This memorandum now forms the basis of all contracts between the health schemes and providers. Claims processing is a manual process, with some automation in enrollment verifications and claims documentation.

The amount of the reimbursement is often less than 100%, with some schemes, for example, paying 70% (e.g., Ossu Kottery – urban scheme in higher income area of Accra), others paying as low as 40% (e.g., Dodowah, rural area outside Accra). The balance is supposed to be paid at later date.

Nigeria: National Health Insurance System
  • Fee-for-service
  • Capitation

Patients are allowed to choose their primary provider from the list of accredited facilities, which includes both public and private providers. The provider network is used for access and secondary referrals, which acts to control costs and maintain viability of the system. Provider payment mechanisms are primarily determined by the National Health Insurance System (NHIS) Governing Council.

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Patients are allowed to choose their primary provider from the list of accredited facilities, which includes both public and private providers. The provider network is used for access and secondary referrals, which acts to control costs and maintain viability of the system. Provider payment mechanisms are primarily determined by the National Health Insurance System (NHIS) Governing Council. For private insurers, this is determined between HMOs and Providers, with oversight from the central government, and referral to specialist care follows guidelines that are managed accordingly. Decree 35 determined that the only lawful payment systems to be included in NHIS are capitation, fee-for-service, per diem, or case payment. A capitation system is the predominant form of provider payment used to pay primary healthcare facilities, while secondary and tertiary healthcare facilities are paid by fee for service and per diem.

India: RSBY
  • Fee-for-service
  • Diagnosis-Related Groups

Providers are paid on a fee-for-service basis, with packages defined for each of the covered procedures and interventions. Claims submission and processing is cashless, allowing hospitals and insurers to submit claims and payments online.

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Providers are paid on a fee-for-service basis, with packages defined for each of the covered procedures and interventions. Claims submission and processing is cashless, allowing hospitals and insurers to submit claims and payments online.

The process for reporting and paying claims is designed to be simple and cashless from the perspective of the provider and beneficiary. In general, the process looks as follows:

  1. A patient comes to a provider to receive care and goes straight to the RSBY help desk; the patient’s identity is verified via fingerprints
  2. The patient visits the doctor who assesses his/her health condition; doctor prescribes a treatment
  3. Assistant at RSBY help desk checks whether procedure is in the list of pre-specified packages. Procedures are priced/paid to the provider on a case-based payment system
    a. If procedure is on list, appropriate prescribed package is selected, patient is scheduled for procedure, and the amount to be paid out is blocked
    b. If not on list, help desk checks with insurer to price and get approval to conduct procedure, patient is scheduled for procedure, and the pre-determined amount to be paid is blocked
  4. In-patient treatment is provided to the beneficiary.
  5. Upon release of beneficiary from hospital, SmartCard is swiped again with fingerprint verification a. Beneficiary is paid by the hospital Rs. 100/- as transportation expense at time of discharge b. The pre-specified cost of procedure is deducted from the amount available on the card
  6. After rendering service to patient, hospital sends an electronic report and claim to the insurer/TPA
  7. The insurer/TPA reviews the records and information and makes payment to the hospital (electronically) within a specified time period (agreed upon between insurer/TPA and hospital)

At present there are no quality standards being utilized by RSBY, but the national team is working with states and insurers to develop an incentive based quality management system for providers (e.g., a system where hospitals are graded according specific quality parameters and hospitals with better quality are paid at a higher rate by insurers).

Mexico: Seguro Popular
  • Fee-for-service
  • Capitation
  • Diagnosis-Related Groups

The interventions included in the CAUSES are paid for by capitation. Meanwhile, the interventions carried out under the FPGC are paid for on a per-case basis. The payment mechanism for contracts with private providers is vague. The reform stated that health services should be provided by state health secretariats in accordance with the state of residence of the insured family or by other public health institutions that have contracted with the state health secretariats. After the passage of the law, however, the executive branch issued a by-law that introduced the option of contracting with the private sector. The problem with this by-law is that it does not specify the form that payments to private sector will take. Thus, such payments take place on an ad-hoc, non-systematic basis.

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The interventions included in the CAUSES are paid for by capitation. Meanwhile, the interventions carried out under the FPGC are paid for on a per-case basis. The payment mechanism for contracts with private providers is vague. The reform stated that health services should be provided by state health secretariats in accordance with the state of residence of the insured family or by other public health institutions that have contracted with the state health secretariats. After the passage of the law, however, the executive branch issued a by-law that introduced the option of contracting with the private sector. The problem with this by-law is that it does not specify the form that payments to private sector will take. Thus, such payments take place on an ad-hoc, non-systematic basis.

Thailand: Universal Coverage Scheme
  • Capitation

UCS uses capitation as the main provider payment mechanism. Initially, providers were given the option of receiving reimbursements based on either total capitation or capitation for outpatient services and DRG for inpatient services at the provincial level. However, due to the disincentive of paying providers for high-cost care and delays in case referrals, UCS began using a single payment system in 2003.

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UCS uses capitation as the main provider payment mechanism. Initially, providers were given the option of receiving reimbursements based on either total capitation or capitation for outpatient services and DRG for inpatient services at the provincial level. However, due to the disincentive of paying providers for high-cost care and delays in case referrals, UCS began using a single payment system in 2003.

The current payment mechanism for UCS is a mixed system of risk-adjusted capitation for primary care, a DRG-based capped global budget, and fixed rate fees for some services.

It should be noted that health promotion and prevention services for all Thai citizens are paid by the UCS.