Strategic purchasing is a core health financing function where pooled funds are used to buy health services in a way that maximizes efficiency, equity, and quality. It involves deciding what to buy, from whom, and how to pay providers. Transitioning from input-based financing (budgets tied to inputs like staff and supplies) to output-based financing (payments linked to services delivered and outcomes achieved) is essential for advancing Universal Health Coverage (UHC).
Many health systems still rely on rigid, input-based budgeting that does not incentivize performance, quality, or efficiency. This leads to underperformance, resource wastage, limited accountability, and weak alignment between funding and health outcomes.
This course equips policymakers and health system leaders with practical tools to design and implement strategic purchasing and contracting mechanisms. It focuses on output-based financing models, provider payment reforms, contract design, and performance management systems.
Key Concepts Covered
• Strategic purchasing in health systems
• Input-based vs output-based financing models
• Provider payment mechanisms (capitation, DRGs, performance-based payments)
• Contracting and provider engagement
• Benefit package design and prioritization
• Quality assurance and performance measurement
• Data systems for purchasing decisions
• Governance and accountability in purchasing
Participants will apply skills to:
• Design output-based financing systems
• Develop contracts with healthcare providers
• Align funding with service delivery outcomes
• Improve efficiency and accountability in health spending
• Strengthen UHC implementation strategies
• Optimize provider performance and incentives
By the end of the course, participants will be able to implement strategic purchasing reforms, improve provider performance, and enhance health system efficiency and equity.
Duration
5 Days
Who Should Attend
• Health ministry officials and policymakers
• Health financing specialists and economists
• Public finance and treasury professionals
• Health insurance managers and administrators
• Donor agencies and development partners
• Public health program managers
• Procurement and contracting professionals
Individual Impact
• Strengthen expertise in strategic purchasing
• Improve ability to design financing reforms
• Enhance skills in contract development and management
• Build capacity in performance-based financing
• Improve decision-making using data
Organizational Impact
• Improve efficiency and value for money in health spending
• Strengthen accountability and transparency
• Enhance quality of healthcare services
• Accelerate progress toward UHC
• Optimize provider performance and incentives
By the end of this course, participants will be able to:
• Differentiate between input-based and output-based financing
• Design strategic purchasing frameworks
• Develop and manage provider contracts
• Apply performance-based payment mechanisms
• Use data to inform purchasing decisions
• Strengthen governance and accountability systems
• Improve health system efficiency and outcomes
Module 1: Foundations of Strategic Purchasing in UHC
• Overview of UHC and health financing
• Role of purchasing in health systems
• Limitations of input-based financing
• Principles of strategic purchasing
• Exercise: Assess current purchasing systems
• Case Study: Transitioning to strategic purchasing
Module 2: Designing Output-Based Financing Models
• Types of provider payment mechanisms
• Performance-based financing (PBF)
• Capitation and case-based payments (DRGs)
• Aligning incentives with outcomes
• Practical: Design a payment model
• Case Study: Improving service delivery through incentives
Module 3: Contracting and Provider Engagement
• Contract design and negotiation
• Defining service packages and expectations
• Risk-sharing and accountability mechanisms
• Managing public and private providers
• Exercise: Develop a provider contract
• Case Study: Effective contracting in health systems
Module 4: Performance Measurement and Quality Assurance
• Key performance indicators (KPIs)
• Monitoring and evaluation systems
• Quality assurance frameworks
• Data-driven decision-making
• Practical: Develop a performance monitoring plan
• Case Study: Linking payment to quality outcomes
Module 5: Governance, Implementation, and Scale-Up
• Institutional arrangements for purchasing
• Financial and regulatory governance
• Managing reform transitions
• Scaling strategic purchasing systems
• Capstone Exercise: Strategic purchasing reform plan
• Case Study: National-level implementation success
Whether you join us in a physical boardroom or through our virtual campus, we’ve designed every administrative detail for a seamless, professional experience.
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From registration to the classroom, we keep things clear and efficient.
We provide premium environments optimized for adult learning and networking.
You’ll leave with tools that extend the course value far beyond the final day.
We validate your commitment to excellence with internationally recognized credentials.
Our relationship with you doesn’t end when the course closes.
We offer customized training solutions tailored to your organization's specific needs (location, dates, content and team size).
Talk to us and we’ll guide you on the best schedule and format for your team.
We turn knowledge into results. Using our P.E.A.K. Framework (Prepare, Engage, Apply, Know), every participant leaves with practical skills they can use immediately.
In the last 12 months, over 1,200 professionals have applied the P.E.A.K. Framework to reduce onboarding time by an average of 30% and accelerate project delivery across 14 industries.
The outcome: Participants don’t just learn. They gain the tools, confidence, and strategy to drive measurable impact.
Off-the-shelf solutions rarely fit perfectly. At ForElite Training Institute, we built our Tailor-Made Training (TMT) service to embed our expertise directly into your unique strategy, culture, and operations.
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