Making Decisions about Activity-Based Financing in Health Care: Payment Mechanisms and Policy Goals

Authors: Strumpf, Erin; Faraj, Samer; Verter, Vedat

Abstract: 

A major health policy goal in Quebec and across Canada is improving health care system efficiency, that is, maintaining and improving the health of the Quebec population at the lowest cost possible. This definition of efficiency encapsulates the idea that within the short‐term context of a “fixed” budget for health care it is possible to change organizational structures or payment schemes to increase health while using the same amount of total resources. It also reflects the idea that, even as budgets grow over time, government has many competing spending priorities. A dollar spent on health care is one that cannot be spent elsewhere, so we expect each dollar spent on health and social services to produce high health value.

Read full paper: A Better Access to Healthcare