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Paying for volume: British Columbia’s experiment with funding hospitals based on activity

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  • Sutherland, Jason M.
  • Liu, Guiping
  • Crump, R. Trafford
  • Law, Michael

Abstract

For decades, Canadian hospitals have been funded using global budgets, a lump sum for providing care irrespective of the volume or mix of patients. In 2010, British Columbia (BC) introduced a controversial, but limited, form of activity-based funding (ABF) for hospitals. This study uses a quasi-experimental design to evaluate the impact of the introduction of ABF funding in the province.

Suggested Citation

  • Sutherland, Jason M. & Liu, Guiping & Crump, R. Trafford & Law, Michael, 2016. "Paying for volume: British Columbia’s experiment with funding hospitals based on activity," Health Policy, Elsevier, vol. 120(11), pages 1322-1328.
    • Handle: RePEc:eee:hepoli:v:120:y:2016:i:11:p:1322-1328
    DOI: 10.1016/j.healthpol.2016.09.010
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    References listed on IDEAS

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    1. Moreno-Serra, Rodrigo & Wagstaff, Adam, 2010. "System-wide impacts of hospital payment reforms: Evidence from Central and Eastern Europe and Central Asia," Journal of Health Economics, Elsevier, vol. 29(4), pages 585-602, July.
    2. O'Reilly, Jacqueline & Busse, Reinhard & Häkkinen, Unto & Or, Zeynep & Street, Andrew & Wiley, Miriam, 2012. "Paying for hospital care: the experience with implementing activity-based funding in five European countries," Health Economics, Policy and Law, Cambridge University Press, vol. 7(1), pages 73-101, January.
    3. Cohen, Deborah & Manuel, Douglas G. & Tugwell, Peter & Sanmartin, Claudia & Ramsay, Tim, 2014. "Direct healthcare costs of acute myocardial infarction in Canada’s elderly across the continuum of care," The Journal of the Economics of Ageing, Elsevier, vol. 3(C), pages 44-49.
    4. Jason Sutherland & R. T. Crump & Nadya Repin & Erik Hellsten, 2013. "Paying for Hospital Services: A Hard Look at the Options," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 378, April.
    5. Or., Zeynep, 2014. "Implementation of DRG Payment in France: Issues and recent developments," Health Policy, Elsevier, vol. 117(2), pages 146-150.
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    Cited by:

    1. Messerle, Robert & Schreyögg, Jonas, 2022. "System-wide effects of hospital payment scheme reforms: The German introduction of diagnosis-related groups," hche Research Papers 26, University of Hamburg, Hamburg Center for Health Economics (hche).
    2. Pott, Clara & Stargardt, Tom & Frey, Simon, 2023. "Does prospective payment influence quality of care? A systematic review of the literature," Social Science & Medicine, Elsevier, vol. 323(C).

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