Transforming Ontario's Health Care System

Changing funding to drive patient-centred, evidence-based quality care in the appropriate setting

Historically, hospitals have received global, or base funding (an across-the-board increase each year). In April 2012 Ontario initiated funding reform, moving to a funding model that reflects the needs of the patients served by each hospital and its surrounding community. This model compensates health care organizations based on how many patients they look after, the services they deliver, the evidence-based quality of those services, and the specific needs of the broader population they serve. Funding reform has been expanded to the community sector as well, with Community Care Access Centres and long-term care homes also moving towards funding that reflects the needs of patients they serve.

Health system funding reform uses two funding models: the health-based allocation model (HBAM) and the Quality-Based Procedures model (QBP). Together these models ensure that funding is allocated based on the number of patients and the procedures that are the most successful and efficient at delivering high-quality care.

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