Health-Based Allocation Model (HBAM)
With the creation of LHINs, the government signaled its intention to develop and implement a new funding approach that will promote transparency, simplicity, predictability, data quality, cost effectiveness and sector integration – The new Health-Based Allocation Model (HBAM).
HBAM is a new, made in Ontario, approach to health care funding. It provides an evidence-based approach for the Ministry to distribute funding to LHINs. HBAM is used by the LHINs to distribute funding to the Hospital health service provider organizations. HBAM was tailored to provide a perfect fit for the new organization and objectives of the Ontario health care system.
HBAM builds on Ontario’s investments in data and funding model development. Much like its predecessor models, HBAM is based upon historical utilization patterns and indirect measures of population health status, and takes into account both population and provider-based factors.
However HBAM adds a new dimension to population-based allocation methodologies: the introduction of the person profile. The person profile is an electronic health record of various types of health services provided within a specific period of time. This aspect of HBAM provides an appropriate template for future funding policy development in support of the LHIN structure. HBAM facilitates linkages across sectors and promotes the integration of services throughout the health care system.
HBAM is intended to be used as both a funding allocation methodology and a management tool for strategic decision-making. The primary objective of HBAM is to enable government to allocate funding to the LHINs for local health services. Currently, HBAM is designed to allocate funding for the hospital and home care sectors. The end goal is to allocate funding for all LHIN health care sectors.
Contained within this page is the Hospital HBAM Shares and Variances Report. This spreadsheet contains a summary of the actual and HBAM expected shares and variances, for each hospital care type module and overall, for publicly funded hospitals* in Ontario for 2009-10 and 2011-12. This information is based upon the results posted on the Ministry of Health and Long-Term Care HBAM website.
Click here to download a summary of the actual and HBAM expected shares and variances for 2009-10 and 2011-12.