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Background and purpose: The primary health care program for the suburbs is being implemented in Iran after the Health Transformation Plan where services are delivered with the priority of outsourcing and purchasing services from non-governmental sectors. In this program, different payment methods have been used. This study aimed at addressing the challenges associated with payments made to urban primary health care providers in Iran.

Materials and methods: This qualitative study was conducted using a framework analysis approach through semi-structured interviews with 30 experts and service providers. Data were analyzed using MAXQDA. 10 and Gale framework analysis method.

Results: The study showed that lack of proper financing of the program is one of the most important challenges of the payment system. Other challenges included insufficient and late payments to providers, impossibility of recording all activities and inability to exchange data between electronic information registration systems (both horizontally and vertically), improper contracting method, incompatibility of service package volume with the amount of payment, the impossibility of applying the monitoring result on the amount of payment due to paying the minimum amount of labor law payment, and inflexibility of payment instructions.

Conclusion: The payment system for urban primary care providers does not have a suitable structure in various dimensions, including financing, payment, contracting method, data registration system, and monitoring and evaluation system. If these problems continue to exist, providers would leave the service system and the quantity …