In 1999 the U.S. Agency forInternational Development introduced performance-basedcontracting in an effort to improve the effectiveness ofsome of Haiti's nongovernmental organizations inproviding basic health services, such as immunization andprenatal and maternal care. These providers has beenoperating under a payment system that reimbursed theirexpenses up to a ceiling. The new systems set performancetargets and withheld a portion of their historical budget,allowing them to earn back the withheld payment plus a bonusif they met the targets. A one-year pilot involving threeproviders showed some marked improvements in performance.