RAJ REPORT

WILL activity based funding lead to a cultural change in QUEENSLAND HOSPITALS—-The responsibility for optimizing resource use and reducing service costs, which must make up part of the role of hospital administrators, could be difficult to take on if they cannot make the necessary decisions with regard to the allocation of resources, both human and material, within their hospitals.

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conclusion: toward a cultural change
Certain Canadian experiments based on incentivized payments for hospitals, especially in Ontario and British Columbia, have also proven to be effective in reducing wait times24  and could serve as sources of inspiration to the Quebec government for its pilot project. However, the implementation of hospital funding reform in Quebec will likely face certain challenges.
Activity-based funding will require, among other things, changes to hospital administration rules. Currently, doctors enjoy a great deal of freedom in their practices and are remunerated directly by the Quebec Health Insurance Board. The responsibility for optimizing resourceC use and reducing  service costs, which must make up part of the role of hospital administrators, could be difficult to take on if they cannot
make the necessary decisions with regard to the allocation of resources, both human and material, within their hospitals.

Activity-Based Hospital Funding:
We’ve Waited Long Enough
A funding model that needs
to be re-examined

May 2012
Health Care Series
ECONOMIC
NOTE
by Yanick Labrie

 

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