Health System Funding Reform (HSFR)

Beginning in 2012/13, the Ministry of Health and Long-Term Care introduced Health System Funding Reform (HSFR) by which the province will move away from a global funding system to what is known as Patient-Based Funding (PBF).

Under PBF, health care organizations will be compensated based on how many patients they serve, the services they deliver, the evidence-based quality of those services and the specific needs of the population they serve.

HSFR consists of two components:  

1) Health Based Allocation Model (HBAM) is a “made in Ontario” funding model that determines the optimal amount of funding based on patient demographics, and clinical and financial data.

2) Quality Based Procedures (QBPs) are clinically related diagnoses/treatments where there is opportunity for reduction in variation of costs and clinical practices.  Examples of QBPs include Cataract Surgery and Congestive Heart Failure.

Additional information and resources are available for health service providers through the Ministry of Health and Long-Term Care's Health Data Branch Web Portal.