IDEAS home Printed from https://ideas.repec.org/a/clh/resear/v7y2014i11.html
   My bibliography  Save this article

Ontario's Experiment with Primary Care Reform

Author

Listed:
  • Arthur Sweetman

    (Department of Economics and Centre for Health Economics and Policy Analysis, McMaster University)

  • Gioia Buckley

    (Centre for Health Economics and Policy Analysis, McMaster University)

Abstract

For the past decade-and-a-half, the government of Ontario has been implementing sweeping reforms in an effort to improve primary health care delivery. Altering physician-compensation models is central to this initiative. One measure of the scale of change is that in 2000 roughly 95 per cent of general/family practitioners were paid traditional fee-for-service, but by 2013 that proportion had plunged to just 28 per cent. The province has clearly succeeded in largely replacing the traditional fee-for-service payment structure with blended payment models that are mostly group-oriented and include: 1) capitation (in some cases): a single payment for providing a particular “basket” of services to a patient for a fixed period, for example a year, regardless of the number of services provided, 2) fee-for-service payment, for services outside the capitated basket and provided in special situations, and 3) various bonuses and incentives (sometimes called pay-for-performance) that mostly focus on preventive care and the management of chronic conditions. Physicians in rural and northern areas, as well as some clinics, also have salary and similar models as options. Ontario has simultaneously introduced patient “rostering” - the formalized connecting of one patient to one physician and/or physician team/group - creating a relationship better suited to delivering preventative health care services. However, when surveyed, many patients are unaware that they have been “rostered” meaning that at present much of the benefit must be derived from the physician side alone. It remains to be seen whether or not it is important for patients to be aware that they are rostered. Beyond its clinical benefits, rostering has appreciable rhetorical and political value, as well as potential as a planning tool in efforts to ensure that the local and provincial supply of primary care is appropriate. In a health-care system as large and complex as Ontario’s, reform is more evolutionary than revolutionary; but the province has arguably moved rapidly within this context. Expenditures have been substantial and the initiatives groundbreaking. However, the same challenges that make reform a formidable undertaking also make it difficult to readily, or quickly, measure success, especially since many changes are ongoing. It is not yet demonstrably clear to what degree the government’s goals are being achieved. At present, there are mixed and conflicting findings about whether some of these changes have moved the health system towards the intended goals of improving health-care access and quality, and patient satisfaction, let alone whether the potential improvements can justify the resources expended to achieve them. Naturally, those results we do have at this point offer insight only into the short-term effects of these changes. Especially, it is too early for sufficient evidence to have accumulated on the impact of new physician-group models on downstream costs, including drug prescriptions, specialist care, hospital costs and the use of diagnostic tests. These are, however, central questions that will in large part determine success. Also, it appears that the Ontario government could have accomplished nearly all of its goals so far without having implemented capitation, although capitation may prove beneficial in the longer term as the scarcity of physicians since the 1990s seems to be shifting towards a surplus. In this new era, the health ministry will likely need to take a more hands-on role than it has in the past, including improved system monitoring. Going forward many stakeholders should be involved in evaluating this experiment on an ongoing basis to ensure that it is serving the healthcare needs of the population in an effective and efficient way.

Suggested Citation

  • Arthur Sweetman & Gioia Buckley, 2014. "Ontario's Experiment with Primary Care Reform," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 7(11), April.
  • Handle: RePEc:clh:resear:v:7:y:2014:i:11
    as

    Download full text from publisher

    File URL: http://www.policyschool.ca/wp-content/uploads/2016/03/ontario-health-care-reform.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nibene H. Somé & Rose Anne Devlin & Nirav Mehta & Gregory S. Zaric & Sisira Sarma, 2020. "Stirring the pot: Switching from blended fee‐for‐service to blended capitation models of physician remuneration," Health Economics, John Wiley & Sons, Ltd., vol. 29(11), pages 1435-1455, November.
    2. David Gray & William Hogg & Michael E. Green & Yan Zhang, 2015. "Did Family Physicians Who Opted into a New Payment Model Receive an Offer They Should Not Refuse? Experimental Evidence from Ontario," Canadian Public Policy, University of Toronto Press, vol. 41(2), pages 151-165, June.
    3. Jasmin Kantarevic & Boris Kralj, 2016. "Physician Payment Contracts in the Presence of Moral Hazard and Adverse Selection: The Theory and Its Application in Ontario," Health Economics, John Wiley & Sons, Ltd., vol. 25(10), pages 1326-1340, October.
    4. Somé, N.H. & Devlin, R.A. & Mehta, N. & Zaric, G.S. & Sarma, S., 2020. "Team-based primary care practice and physician's services: Evidence from Family Health Teams in Ontario, Canada," Social Science & Medicine, Elsevier, vol. 264(C).
    5. Sisira Sarma & Nirav Mehta & Rose Anne Devlin & Koffi Ahoto Kpelitse & Lihua Li, 2018. "Family physician remuneration schemes and specialist referrals: Quasi‐experimental evidence from Ontario, Canada," Health Economics, John Wiley & Sons, Ltd., vol. 27(10), pages 1533-1549, October.
    6. Nadine Chami & Arthur Sweetman, 2019. "Payment models in primary health care: A driver of the quantity and quality of medical laboratory utilization," Health Economics, John Wiley & Sons, Ltd., vol. 28(10), pages 1166-1178, October.
    7. David Rudoler & Raisa Deber & Janet Barnsley & Richard H. Glazier & Adrian Rohit Dass & Audrey Laporte, 2015. "Paying for Primary Care: The Factors Associated with Physician Self‐selection into Payment Models," Health Economics, John Wiley & Sons, Ltd., vol. 24(9), pages 1229-1242, September.
    8. Vu, Thyna & Anderson, Kelly K. & Devlin, Rose Anne & Somé, Nibene H. & Sarma, Sisira, 2021. "Physician remuneration schemes, psychiatric hospitalizations and follow-up care: Evidence from blended fee-for-service and capitation models," Social Science & Medicine, Elsevier, vol. 268(C).
    9. Rudoler, David & Peckham, Allie & Grudniewicz, Agnes & Marchildon, Greg, 2019. "Coordinating primary care services: A case of policy layering," Health Policy, Elsevier, vol. 123(2), pages 215-221.
    10. Nibene H. Somé & Rose Anne Devlin & Nirav Mehta & Greg Zaric & Lihua Li & Salimah Shariff & Bachir Belhadji & Amardeep Thind & Amit Garg & Sisira Sarma, 2019. "Production of physician services under fee‐for‐service and blended fee‐for‐service: Evidence from Ontario, Canada," Health Economics, John Wiley & Sons, Ltd., vol. 28(12), pages 1418-1434, December.
    11. Zhang, Xue & Sweetman, Arthur, 2018. "Blended capitation and incentives: Fee codes inside and outside the capitated basket," Journal of Health Economics, Elsevier, vol. 60(C), pages 16-29.
    12. Thomas Christopher Lange & Travis Carpenter & Jennifer Zwicker, 2020. "Primary Care Physician Compensation Reform: A Path for Implementation," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 13(4), April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:clh:resear:v:7:y:2014:i:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bev Dahlby (email available below). General contact details of provider: https://edirc.repec.org/data/spcalca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.