Health System Funding Reform
2014-15 Funding Release – HNHB
“Dramatically improving the patient experience through Quality,
Integration and Value”
Audit Committee Meeting
October 29, 2014
Outline
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HSFR Roll-Out Plan for Hospitals
HSFR Overview
2014-15 HSFR Summary
Pre-Mitigation Funding Calculation
• The Health Based Allocation Model (HBAM)
• The Quality Based Procedure
Mitigation Funding Calculation
Impact Analysis Workbook Review
Funding Impact Analysis
Support Resources
Q&A Session
2
Releasing HSFR Funding Information
3
Change is Necessary
4
Health System Funding Reform
5
Health System Funding Reform
6
HSFR Implementation
HSFR Phased-in Over Time
Example: Hospital Changes Over Time
Pre-HSFR
Current
Full Implementation
QBP
Global
Funding
QBP
HBAM
Global
Funding
Global
Funding
HBAM
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Quality Based Procedures
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2014-15 HSFR Summary
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2014-15 HSFR Summary
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2014-15 QBP Methodology Updates
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2014-15 QBP Approach
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Other Methodology Updates
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What is HBAM?
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HBAM is an evidenced-based, health-based funding formula.
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HBAM estimates future expense levels based upon past
service levels and unit costs, as well as population and health
information.
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Population information includes:
• Age, Gender, Growth Projections, Socio-Economic Status
(SES), Rural Geography
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Health information includes indirect measures and health
status
• Care-type specific diagnostics and procedural information
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HBAM Overview
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HBAM – Expected Results
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QBP Funding Calculation & Allocation
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2014-15 Mitigation Funding
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HNHB Results – 2014-15 - Hospitals
A
Hospital
B
HBAM
C
LHIN
Managed
QBPs
D
Subtotal
E
F
Endoscopy Chemotherapy
G
H
CKD
HSFR Total
(B+C)
St Catharines Hotel Dieu
Grimsby West Lincoln Memorial
Burlington Joseph Brant Memorial
Simcoe Norfolk General Hospital
St Catharines Niagara Health System
Brantford Brant Community Health System
Hamilton St Joseph's Health Care
Hamilton Health Sciences Corporation
(197,638)
67,161
104,745
125,479
(790,841)
450,654
3,679
91,195
7,912,408
305,742
(463,349) 1,975,304
2,086,416 (2,604,720)
(235,856) 6,137,939
HNHB TOTAL
8,419,564
(130,477)
230,224
(340,187)
94,874
8,218,150
1,511,955
(518,304)
5,902,083
6,548,754 14,968,318
(D+E+F+G)
0
0
72,861
190,915
(969,814)
(75,607)
(757,261)
(165,378)
0
0
0
0
422,005
0
0
0
385,513
251,780
53,747
0
0 1,368,166
(98,593)
0
(1,704,284)
762,672 1,619,946
(130,477)
230,224
154,679
285,789
7,885,629
1,490,095
92,601
5,638,112
15,646,652
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HNHB Results – 2014-15 - CCAC
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Mitigation Remains in CCAC Sector: -1% to +3%
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HBAM represents approximately 30% of total
funding allocation
2014-15 HBAM Impact
2014-15 QBP Impact
(2,888,128)
240,376
Pre-Mitigation Impact
(2,647,752) -3.51%
2014-15 One-Time Mitigation 1,892,410
2014-15 HSFR Impact
(755,342) -1.00%
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Small Hospitals
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Fewer than 2,700 acute inpatient and/or day surgery
weighted cases in any two of the prior three years of
the most recent data
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Two Hospitals in HNHB
1. Haldimand War Memorial Hospital
2. West Haldimand General Hospital
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Continue to receive funding on Global basis
(no HBAM or QBP)
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Thank you
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