Performance-based Incentives for Health: Demand- and Supply-Side Incentives in the Nicaraguan Red de Protección Social - Working Paper 119
Nicaragua was one of the first low-income countries to try a conditional cash transfer (CCT) program. Under the program, poor families are paid for keeping their children in school and visiting preventive healthcare providers. Healthcare providers are paid based on their performance against predetermined targets. A rigorous evaluation of the program shows that the CCT program significantly increased the use of health services among the poor.