IDEAS home Printed from
   My bibliography  Save this paper

Needs-Based Health Care Funding: Implications for Resource Distribution in Ontario


  • Kelly Bedard

    (UC - Santa Barbara)

  • John Dorland

    (Queen's University)

  • Allan W. Gregory

    (Queen's University)

  • Joanne Roberts

    (University of Toronto)


Capitation models have been suggested as an alternative to funding methods baseed 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 Mortatility 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 which has assumed a linear relationship between expenditures and need, our estimates suggest that the relationship may actually be highly non-linear. This non-linearity increases transfers of relative need relative to a linear capitation program.

Suggested Citation

  • Kelly Bedard & John Dorland & Allan W. Gregory & Joanne Roberts, "undated". "Needs-Based Health Care Funding: Implications for Resource Distribution in Ontario," Claremont Colleges Working Papers 1999-18, Claremont Colleges.
  • Handle: RePEc:clm:clmeco:1999-18

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    1. Banerjee, Anindya & Lumsdaine, Robin L & Stock, James H, 1992. "Recursive and Sequential Tests of the Unit-Root and Trend-Break Hypotheses: Theory and International Evidence," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 271-287, July.
    2. Willard, Kristen L & Guinnane, Timothy W & Rosen, Harvey S, 1996. "Turning Points in the Civil War: Views from the Greenback Market," American Economic Review, American Economic Association, vol. 86(4), pages 1001-1018, September.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. 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.
    2. Marcelin Joanis & David Boisclair & Claude Montmarquette, 2004. "La santé au Québec : des options pour financer la croissance," CIRANO Project Reports 2004rp-04, CIRANO.
    3. 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.

    More about this item

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health


    Access and download statistics


    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:clm:clmeco:1999-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.