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POGG Canada » Health Care
21
Apr 12

Ontario Healthcare Money Management: Fixing the Missing Link

Executive Summary:

This paper goes one step further than “The Drummond Report (Feb 2012).” It recommends that the Government of Ontario move as quickly as possible to broaden the application of its Patient-Based Payment strategy to encompass all Healthcare Service  Providers (HSPs). The proposed financial administration model retains the existing taxpayer funded healthcare system. However, it calls for discontinuing entirely the current practices of cost-based annual budgetary allotments for all non-OHIP healthcare programs, in particular, for those now under LHINs. It replaces them with a more transparent, accountable revenue-driven business model. This model is comparable, in many respects, to what already exists under the OHIP regime for physicians and prescription drugs. The underpinnings of this radical financial reform are:

1) Publication of a Schedule of Prices for all healthcare services (also known as Case Mix Groups - CMGs) deliverable to every patient, and

2) Replacement of the existing Health Card with a new ‘Smart’ OHIP Card.

The new ‘Smart’ OHIP Card will be the universal accounting platform to be used for billings and payments between all Healthcare Service Providers and the government.

Prudent money management of Ontario’s healthcare dollar will continue to be illusory until citizens and their elected MPPs can hold the government accountable, at the level of the doctor-patient relationship, for the costs of our publicly funded healthcare program. This accountability function will be strengthened by application of the cost performance data available from implementation of the new ‘Smart’ OHIP Health Card and the corresponding billing system. The current funding and financial administration practices for healthcare fail to satisfy this fundamental standard of accountability.

Click here to read the full report (PDF Format).