What is Activity-Based Funding?

Activity-based funding is a method of funding health-care providers (for example, acute-care hospitals, long-term care facilities, rehabilitation facilities) for the care and services they provide. 

The Canadian Institute for Health Information (CIHI) has set up an Activity-Based Funding Unit to assist Canadian health system funders as they consider activity-based funding. CIHI has technical expertise in clinical data, financial data and case mix systems, all of which are important components in the design of an activity-based funding model.