Home News Hospitals & Health Care Health System Funding Reform – Patient Based Funding

Health System Funding Reform – Patient Based Funding


As part of our series about health care and changes to our Georgian Bay General Hospital we are collecting pertinent documents, videos and other resources to help understand how the funding has changed for our local hospital over the past few years and how it will impact services that we have enjoyed for decades.

Health System Funding Reform

In January 2012, the government introduced Ontario’s Action Plan for Health Care. This video tries to explain how funding for hospitals changed in 2012. This is part of the puzzle in understanding how hospitals are funded. This shift is away from global funding to patient-based funding.

The new Patient Based Funding (PBF) approach was introduced effective April 1, 2012 and has two components: the Health Based Allocation Model (HBAM) and Quality-Based Procedures (QBPs). HBAM is an allocation model and management tool that uses demographic, clinical and financial information to estimate expected volumes of patients and costs at a facility level; this is then used to identify an organization’s expected share of overall sector funding. QBP’s are targeted activities funded on a “price X volume” basis. They are funded based on evidence (e.g. utilization patterns, best practices) to encourage improvement in value for money, including improved outcomes and reduced variation across providers.




Leave a Reply

Health System Funding Reform – Patient Based Funding

%d bloggers like this: