CARROT AND STICK - STATE MECHANISMS TO INFLUENCE PRIVATE PROVIDER BEHAVIOR

The behaviour of private sector health care providers will depend crit ically on the environment within which they operate. A bewildering arr ay of possible regulatory and incentive setting structures exist. Most developing countries have the basic legislation for regulation, but t here are frequently difficulties in enforcing such controls. While pro cess aspects of quality of care regulation are often the responsibilit y of professional organizations, these organizations may have limited incentives to be active in ensuring high quality medical care. There h as been less experience with the use of incentives to encourage approp riate behaviour amongst private providers: this appears a promising ar ea for further work. Above all, adequate information is essential both for the enforcement of regulations and the application of incentive m echanisms.