Question

List the four health care funding methods used in Canada. State the health care funding method used in your jurisdiction and describe the payroll implication, if any.

Answer 1

The healthcare system in Canada is predominately public, wherein the 70% of funding arrives from the public-owned sector and 30% comes from the private-owned sector. The health care in Canada is funded at both the federal and provincial levels. The main sources of health care funding are personal taxes, corporate income taxes, and sales tax and lottery proceeds. The main methods are:

--Current Funding Model: In Canada it is the main funding model that acts as a global budget, which means a fixed amount is allocated to a provider, irrespective of quantity of patients treated or quality of care.

-- Bundled Payment: Under this method a single payment is utilized for funding all of the care in regard to the medical event or condition within a fixed time frame, spanning locations and providers.

-- Activity Based Funding: Under ABFF the providers are allocated funds based on the volume and type of services and complexity of the population of patient they serve

-- Integrating Funding Model: Under this model there is an increase in integration among siloed health sectors (such as acute care, primary care, pharmaceuticals, mental health) is a target of numerous health systems.

I am staying in Alberta and the hospitals are currently paid using global budgets, thus the hospitals receives a huge amount of money in advance to provide services to Albertans. The result of paying in advance in a lump sum for all health care to be delivered is a lower standard of care and fewer services for patients