Tag Archives: Health Based Act

Hospitals to compete on cost as province introduces new funding mechanisms

In March Deb Matthews told the media that 36 hospitals will have their budgets cut by as much as three per cent when this year’s new hospital funding formula rolls out.

This week the Ministry held a technical briefing and remarkably told its labour stakeholders that in year one about 10 per cent of hospitals will see increases in funding no greater than 1.8 per cent and decreases no greater than 1.5 per cent.

They also state that 90 per cent of hospitals will see less than a one per cent difference in their budget allocation, plus or minus.

Back in March 91 hospitals were expected to “benefit” from the new formula. Now the Ministry says only 90 hospitals will participate – small rural and northern hospitals being excluded from the Health Based Activity Model (HBAM).

That’s a big difference.

Continue reading