Activity-Based Funding

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

CIHI has a team of experts who can assist Canadian health system funders as they consider activity-based funding. We have 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.

We offer workshops and one-on-one meetings to discuss how CIHI can assist in the design and implementation of activity-based funding or other evidence-based funding models.

We welcome your feedback and questions

Activity-based funding information

 Overview
 Reports and analyses
 Databases and data sources
 Related content

Overview of activity-based funding

The objectives of an activity-based funding model can include

  • Increased efficiency of resources
  • Improved transparency of health care spending
  • Improved access to care
  • Increased equity in funding among health care organizations
  • Better accountability in the health care sector

Activity-based funding is defined by several features:

  • Case mix: A case-mix system is used to describe hospital activity and to define its products or outputs
  • Payment price: A payment price is set for each case-mix group in advance of the funding period
  • Payment by patient: Providers are paid a set price for each patient they treat
  • Hospital revenue: A hospital can affect its current-year budget by changing its current-year patient volume and mix

Important areas where CIHI is assisting jurisdictions with the implementation of activity-based funding include

  • Enhancing the way existing case-mix products are used and applied in funding, and creating new products
  • Performing research and providing technical expertise to jurisdictions to help them design, implement, monitor and evaluate health care funding models
  • Promoting knowledge of funding mechanisms and CIHI’s role in case-mix methodologies
  • Helping provinces and territories share their experiences and activities

Reports and analyses about activity-based funding

Databases and data sources about activity-based funding

Related CIHI databases and data sources include