Purchasing and payment methods are equally important financing functions. They can
ensure the provision of efficient, high quality services to beneficiaries. There are four
primary objectives associated with purchasing; 1) to ensure the good health of
beneficiaries, 2) to resolve health problems, 3) to be responsive to social expectations,
and 4) to control costs. Purchasing can be passive, i.e.by simply paying bills as they are
presented, or active by researching means to maximize health system performance.
For example, researching options may enable one to be in a better position to make
informed decisions about which treatment to purchase,how and from whom. Provider
payment promotes financial incentives, and the range of payment methods supports a
controlling of costs and a variety of service provision incentives.