McGuinty Government Developing New Funding Model Based On Population Needs

    New Made-In-Ontario Model More Responsive To Needs Of Ontario Communities

    TORONTO, Sept. 7 /CNW/ - The McGuinty government is ensuring that local
communities get a fair share of health care funding by developing the
Health-Based Allocation Model (HBAM) to allocate funding to the province's 14
Local Health Integration Networks (LHINs), Health and Long-Term Care Minister
George Smitherman announced today.
    "Our government is looking to the future so that our health care system
can continue to provide the services that communities and patients need," said
Smitherman. "This new formula is a made-in-Ontario model that's unique, fair
and sustainable."
    The Health-Based Allocation Model, under development since early 2006,
takes into account the health status of patients in local communities. The
ministry and LHINs will be able to analyze and interpret data so that areas of
the system with the greatest needs get the greatest share of funding.
    This new funding model is expected to:
    -   Promote equal access to services across Ontario
    -   Ensure funding is responsive to health needs of the patients treated
    -   Promote integration by recognizing opportunities to coordinate
        services across geography, providers and patient types
    -   Promote an equitable share of funding within available resources
    -   Promote fairness by accounting for differences in health and need for

    "The Health-Based Allocation Model is a significant step in the right
direction towards addressing many of the funding inequities that currently
exist in the health care system," said Tariq Asmi, Executive Director, GTA/905
Healthcare Alliance. "I look forward to working with the government to further
develop this model so that hospitals in high growth areas can continue to
provide health care services."
    In the future, each Local Health Integration Network's share of funding
will be based on direct measures of health status and on population-based
factors such as age, gender, socio-economic status, rural geography and
patient flows. The ministry is consulting with the health care sector on the
Health-Based Allocation Model to inform the Local Health Integration Networks
and to seek their advice on its implementation.
    This is just one more example of how, working together, Ontarians have
achieved results in health care services. Other initiatives include:

    -   Investing $700 million in the Aging at Home Strategy that will
        transform community health care services so that seniors can live
        healthy, independent lives in their own homes
    -   Investing $5 billion in modernizing and expanding health care
        facilities by 2010 to meet the needs of the province's growing and
        aging population
    -   Reducing wait times for five key health care services (hip and knee
        joint replacement, cataract surgeries, MRI exams, cancer surgeries
        and cardiac procedures)

    Today's initiative is part of the McGuinty government's plan for
innovation in public health care, building a system that delivers on three
priorities - keeping Ontarians healthy, reducing wait times and providing
better access to doctors and nurses.

    This news release, along with other media materials, such as matte
stories and audio clips, on other subjects, are available on our website at: under the News Media section.
    For more information on achievements in health care, visit:

    Disponible en français.


                        HEALTH-BASED ALLOCATION MODEL

    The McGuinty government is developing a new funding model for the Local
Health Integration Networks called the Health-Based Allocation Model. The
Health-Based Allocation Model has been under development since early 2006, and
has been designed to support the objectives of Local Health Integration
Networks under the Local Health System Integration Act (LHSIA), 2006.

    How Does the Health-Based Allocation Model Work?

    The Health-Based Allocation Model will include both population-based
indicators and direct measures of health status, to provide a more accurate
measure of local health needs.
    The Health-Based Allocation Model determines each LHIN's fair share of
funding based on:

    -   Direct measures of health status
    -   Population-based factors such as age, gender, socio-economic status,
        rural geography and patient flows
    -   Provider characteristics

    Population-based factors include demographics, population growth and
ageing, health status, vulnerable populations, and patient flows.
Provider-based factors include economies of scale, case mix, specialized
programs, as well as teaching and research mission.

    The Model's Guiding Principles

    The model will support a health care system that satisfies the following

    -   Promotes equitable access to services across Ontario
    -   Ensures that money follows the patient - Local Health Integration
        Network funding is responsive to volume of patients treated
    -   Supports integration - recognizes and promotes opportunities to
        coordinate services across geography, providers and patient types
    -   Provides equitable share of funding within available resources.
    -   Promotes fairness - accounts for true differences in health and need
        for services
    -   Promotes innovation through incentives - provides incentives for
        efficient and innovative service provision
    -   Supports evidence-based decision making - provides information that
        facilitates analysis of the interaction between different health
        programs and health sectors


For further information:

For further information: Media Contacts: David Spencer, Minister's
Office, (416) 327-4320; David Jensen, Ministry of Health and Long-Term Care,
(416) 314-6197; Members of the general public: 1-866-532-3161

Organization Profile

Ontario Ministry of Health and Long-Term Care

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890