Beyond the Hospital Walls: Activity Based Funding Versus Integrated Health Care Reform – Canadian Centre for Policy Alternatives – January 2012

Posted on January 30, 2012. Filed under: Health Economics, Health Mgmt Policy Planning | Tags: , |

Beyond the Hospital Walls: Activity Based Funding Versus Integrated Health Care Reform – Canadian Centre for Policy Alternatives – January 2012

by Marcy Cohen, Margaret McGregor, Iglika Ivanova, Chris Kinkaid
ISBN: 978-1-926888-93-4

“Debate about the changed needed to encourage better, more cost-effective health care in Canada heated up over the past year, spurred by anticipated negotiations on a new Health Accord between the federal and provincial governments.

This paper examines two policy options now being introduced in BC, both of which are relevant to other provinces; the first a more integrated approach to health care, and the second a new model for hospital funding known as activity based funding.

Under activity based funding, or ABF, health care providers like hospitals are funded based on the number and type of “activities” they actually perform. In the case of BC, the focus is primarily on encouraging hospitals to carry out more surgical procedures. For these services ABF replaces global funding, which gives health care providers a set budget each year.

We review the international evidence about the effectiveness of these two approaches, and propose concrete recommendations for BC to pursue in the coming years.”

Summary

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