Strategic Purchasing
Strategic purchasing fundamentally aims to align funding and incentives with intended health services. This is achieved by linking the allocation of pooled funds to services / providers, at least in part, to information on population needs / priority interventions, or aspects of provider performance. Strategic purchasing also exists as a fundamental healthcare financing reform to accelerate progress towards Universal Health Coverage (UHC).
Strategic Purchasing is made up of three (3) aspects:
- What to buy? – Which services will respond to the needs of the target population, how will the benefit package be defined?
- From whom to buy? – Which providers, public and/or private, or combination thereof will be able to effectively deliver those services?
- How to buy? – How will providers be paid, at what rates, what are the contracting terms and how will compliance be monitored?
The Directorate is made up of the following:
- Public Private Collaborations (New Accreditation and Contracting requests)
- Maintenance of the Accreditation and Contracting database
- Reporting on Strategic Purchasing
Typically, a passive approach to healthcare financing has generally been adopted, where funding allocations are made primarily on the basis of historical expenditure, and independent of key factors relating to provider performance, population needs or priority health interventions. By incorporating the aforementioned factors into decisions relating to funding allocations, strategic, also referred to as active purchasing, makes provision to enhance equity in the distribution of resources, increase efficiency, manage expenditure growth and promote quality in health care service delivery.
It is important to note however that strategic purchasing does not require a radical shift but rather a continuum from passive to active purchasing through the expansion of critical factors considered in the allocation of funds for healthcare services.
Contact Details:
For any queries, suggestions and comments:
Michael Edward Manning
E-mail: Michael.Manning@westerncape.gov.za
Cell: +27 84 200 1269
Inge Cunningham
E-mail: Inge.Cunningham@westerncape.gov.za
Cell: +27 82 925 2985
Muhammad Ali Moosajee
E-mail: Muhammad.Moosajee@westerncape.gov.za
Cell: +27 84 612 0391