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Newsletter Article


Ontario's New Patient-Based Hospital Funding Formula

Ontario’s government is jettisoning the global hospital budgets that allocate funding evenly across the board and in April is shifting to a new patient-based funding formula for the majority of its hospitals. The new funding formula, called the “Health Based Allocation Model” or HBAM, weighs the number of patients, the services provided, and how efficiently patients are treated. HBAM will divert more money to hospitals in regions where the population is growing and aging and where health care costs are often higher. Psychiatric and small hospitals will be excluded from the formula.



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