Funding Acute Care Facility in Ontario Province

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Running Head: FUNDIND ACUTE CARE FACILITY
Funding Acute Care Facility in Ontario Province
Name
Institution

FUNDING ACUTE CARE FACILITIES 2
Funding of acute care facilities in Ontario
In order to understand the formula through which Ontario province funds acute care
facilities/health authorities, it is important to first look at the health act in Canada. The legislation
was adopted in 1984 and they provide the necessary conditions and criteria that must be followed
in order to receive federal transfer payment. The main conditions include portability,
accessibility and universality among others. The health act deals with how the system will be
funded. According to the legislation, the health care system is funded from the money collected
by the government through taxation. The funds are transferred to the acute care facilities through
the ministry of health and long-term care MOHLTC. This ministry is responsible for deciding
what it does with the 38.7% of tax dollars it receives from the government.
Consequently, the money received given to the acute care facilities is responsible for
dividing these funds into eight main segments of expense operations. Traditionally, the Ontario
government funded the health care sector through global budgets these budgets were based on a
number of factors such as rates of inflation, capital investment decisions in addition to
negotiations and politics. With the increasing number of citizens and patients, the government
resolved to other methods of funding for instance, the government resolved to providing the
provinces with additional funding so as to reduce wait times in the acute priority areas namely,
heart, joint replacement, cancer and cataract surgery.
Impacts of grouping methodologies/case costing on health funding
As denoted by Canada Newswire (2013), the Ontario government uses both CMG and
CACS formula in funding the acute care facilities. The use of these formulas has really brought
great impacts in Ontario. The Ontario government has taken lead in the development and
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