Skip to content Ontario.ca Français

Health System Funding Reform (HSFR)

---

Why is the government doing this now?

In 2012-13, health care consumed 42 cents of every tax dollar. Without a change of course, health spending would eat up 70 per cent of the provincial budget within 12 years.

Our population structure is changing. We're living longer and as we age, the more we depend on our health care system. We now have access to more and better drugs to prevent and treat disease, and there is a rise in the rate of chronic disease such as diabetes and high blood pressure.

The current rate of growth is not sustainable. To ensure the health care system is there for our loved ones and future generations, we must start doing things differently.

---

What are the benefits of Health System Funding Reform?

The main benefits of Health System Funding Reform (HSFR) include :

• Patient-centred care, which will focus on individuals and ensure that funding is tied more directly to the quality care that is needed and will be provided
• Smarter use of limited resources, which will drive a sustainable health care system based on quality

As of 2015/2016, HSFR will comprise 70 per cent of the funding envelope provided to hospitals with the remaining 30 per cent based on global funding.

There are two key components to HSFR :

• Organizational-level funding (will comprise approximately 40 per cent of HSFR allocation): Funding is allocated to hospitals and Community Care Access Centres using the Health Based Allocation Model (HBAM)
• Quality-Based Procedures (will comprise approximately 30 per cent of HSFR allocation): Funding is allocated to specific procedures based on a "price X volume" approach. This involves providing evidence-based allocations to targeted clinical groups. The price is structured to provide an incentive and adequately reimburse providers for delivering high-quality care