Sustained Performance-Based Financing and Health Staff Service Delivery at Masaka District Hospital

Abstract: This study examined the impact of sustained Performance-Based Financing (PBF) on health staff service delivery at Masaka District Hospital. It specifically assessed the effects of financial incentives, payment timeliness, and performance monitoring and evaluation. Guided by Agency, Expectancy, and Equity theories, the research adopted an analytical mixed-methods approach, combining cross-sectional, longitudinal, and qualitative designs. From a target population of 293 staff, a sample of 177 respondents was determined using Slovin’s formula and selected through stratified random sampling. Data were collected using both quantitative and qualitative instruments and analyzed through descriptive, inferential, and thematic methods, while ensuring ethical standards such as informed consent and confidentiality. Findings revealed overwhelmingly positive perceptions of PBF, with over 95% agreement across all areas. Financial incentives (r = .810), payment timeliness (r = .837), and performance monitoring (r = .824) showed strong positive correlations with service delivery (p = .000). ANOVA results (F = 480.734, Sig. = .000) confirmed the statistical significance of PBF’s impact. The study concluded that PBF significantly improved staff motivation, morale, retention, quality of care, and patient satisfaction. It recommended that Masaka District Hospital and the Ministry of Health sustain and strengthen PBF through fair incentives, prompt payments, and strong monitoring systems. Future research should explore long-term and multi-hospital impacts to enhance understanding of PBF’s scalability and sustainability in improving healthcare delivery. Keywords: Performance-Based Financing, Health Staff, Service Delivery, Masaka District Hospital. Title: Sustained Performance-Based Financing and Health Staff Service Delivery at Masaka District Hospital Author: Museruka Straton, Dr. Martin Kimemia Gathiru International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 2, October 2025 - March 2026 Page No: 192-203 Research Publish Journals Website: www.researchpublish.com Published Date: 11-December-2025 DOI: https://doi.org/10.5281/zenodo.17898383 Paper Download Link (Source) https://www.researchpublish.com/papers/sustained-performance-based-financing-and-health-staff-service-delivery-at-masaka-district-hospital