To disperse funds to the health authorities, ministry staff:
The ministry also allocates funding to the health authorities through a Patient-Focused Funding (PFF) model. The model provides financial incentives to the health authorities to encourage delivery of acute care services for a competitive set price. The objective of the PFF model is to reduce wait times and increase same-day surgical procedures.
Of note, because of balanced budget legislation, Health Authorities are not allowed to spend more than their allotted amount and are therefore required to keep spending within their budget limits.
PNBF is a method of allocating a pool of health funds among regions, based on their population’s relative need for health care.
When using the PNBF tool, ministry staff consider the following factors:
In January 2010, the ministry developed an additional tool that divides the population of B.C. into 13 population segments (e.g. end of life, cancer, maternity, frail in long term care, etc.). These segments are used as a more precise measure and predictor of health care utilization. Age distribution is overlaid over these segments to show the percentage of health services used by a particular age group, segment, or age group within a particular population segment.
It is important to highlight that PNBF is simply a tool to help inform Ministry of Health staff in allocating health authority funding. It is not the sole tool used to allocate health authority dollars. Health Authority budgets are typically based on the previous year, with adjustments made for a variety of reasons, including targeted initiatives, capital projects, P3 operations and operating pressures.