Health System Funding Reform

The Ministry of Health and Long-Term Care (MOHLTC) is implementing new hospital funding models CAHO believes Patient-Based Funding models can more accurately support the tri-partite mission of the research hospital (specialized care, education and research), and its ability to support the necessary transformation in Ontario’s health care system. In doing so, proposed funding reforms can help advance the sustainability and impact of the health research enterprise in Ontario.

Patient-Based Funding is made up of two funding models – the Health Based Allocation Model (HBAM), focused on demographics and the complexity of care provided and Quality-Based Procedures (QBP) focused on achieving even better quality and system efficiencies through procedures performed in hospitals.

CAHO member hospitals deliver the most specialized and resource intensive care in Ontario. The complexity of care our hospitals provide inspires and informs the research and innovation agenda within our hospitals and provides the basis for a rich teaching environment. Funding models need to address and sustain this resource and capability.

At the same time, there is no doubt that if the cost curve for the delivery of care in Ontario is going to bend downwards, the delivery of specialized care needs to become more efficient. As the leaders in this field, CAHO members recognize our shared responsibility to work towards sustainable funding models.

CAHO is working with the MOHLTC to take a more holistic view of the resources that research hospitals offer to the province of Ontario. We believe this view should be determined based on what the province expects from the research hospitals in terms of teaching, research, evidence implementation, caring for the majority of urgent and emergency patients, as well as the most complex cases. These expectations can help guide and provide a framework for an appropriate conversation about required levels of investment in Ontario’s research hospitals.

This is a major transformative initiative in Ontario’s health care system and CAHO will continue to be a collaborative partner to this discussion. While we are confident that our concerns have been heard, our input will continue to reflect the need for alignment with the research hospital business model.