Needs-based health care funding: implications for resource distribution in Ontario
AbstractCapitation models have been suggested as an alternative to funding methods based on historical utilization patterns. Capitation funding distributes resources to regions or programs according to their population, adjusted for the age and gender composition and relative need. The most commonly used relative needs measure is the Standardized Mortality Ratio (SMR). This paper compares the distribution of resources in Ontario implied by a variety of capitation formula. Another aspect of this research is to design a mechanism that translates the SMR into a funding allocation index. We specify a non-linear model to capture the relationship between current expenditures and the SMR while controlling for historical utilization factors. In contrast to previous work, in which a linear relationship between expenditures and need was assumed, our estimates suggest that the relationship may actually be highly non-linear. This non-linearity increases transfers to regions of relative need relative to a linear capitation program.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 33 (2000)
Issue (Month): 4 (November)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Other versions of this item:
- Kelly Bedard & John Dorland & Allan W. Gregory & Joanne Roberts, 1999. "Needs-Based Health Care Funding: Implications for Resource Distribution in Ontario," Working Papers jorob-99-03, University of Toronto, Department of Economics.
- Kelly Bedard & John Dorland & Allan W. Gregory & Joanne Roberts, . "Needs-Based Health Care Funding: Implications for Resource Distribution in Ontario," Claremont Colleges Working Papers 1999-18, Claremont Colleges.
- I0 - Health, Education, and Welfare - - General
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
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- Montero Granados, Roberto & Jimenez Aguilera, Juan de Dios & Martin Martin, Jose Jesus, 2007. "Estimation of an index of regional health needs in Spain using count regression models with filter," Health Policy, Elsevier, vol. 81(1), pages 4-16, April.
- Marcelin Joanis & David Boisclair & Claude Montmarquette, 2004. "La santé au Québec : des options pour financer la croissance," CIRANO Project Reports 2004rp-04, CIRANO.
- Kelly Bedard & John Dorland & Allan W. Gregory & Mark Rosenberg, 1999. "Standardized Mortality Ratios and Canadian Health-Care Funding," Canadian Public Policy, University of Toronto Press, vol. 25(1), pages 47-64, March.
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