Resource Type: Technical Brief
Authors: Jose Carlos Gutierrez and Ric Marshall
Published: September 2018

Resource Description:

An important step in transitioning from passive purchasing to strategic purchasing is creating explicit purchasing mechanisms; this requires defined units of service that can be assigned a cost and value. As a continuation of the Health Finance and Governance (HFG) project and United States Agency for International Development (USAID) support to the Ministry of Health and Wellness (MOHW) in developing Botswana’s health financing strategy, HFG provided technical assistance to the MOHW to develop a framework for setting reference tariffs for health services. The purpose of this report is to present the proposed tariff-setting framework. The report describes the current tariff-setting landscape in Botswana, presents the findings of HFG’s proof-of-concept tariff-setting exercise, and outlines the proposed tariff-setting framework. The purpose of the proof-of-concept exercise and tariff-setting framework is to provide a set of recommendations for strengthening the ministry’s capability to develop tariffs based on cost and activity data and to propose a framework for developing an annual cycle for setting reference tariffs.