Health System Funding Reform

1. Health System Funding Reform 2014-15 Funding Release – HNHB “Dramatically improving the patient experience through Quality, Integration and Value” Audit Committee Meeting October 29, 2014

2. Outline • HSFR Roll-Out Plan for Hospitals • HSFR Overview • 2014-15 HSFR Summary • Pre-Mitigation Funding Calculation • The Health Based Allocation Model (HBAM) • The Quality Based Procedure • Mitigation Funding Calculation • Impact Analysis Workbook Review • Funding Impact Analysis • Support Resources • Q&A Session

3. Releasing HSFR Funding Information

4. Change is Necessary

5. Health System Funding Reform

6. Health System Funding Reform

7. HSFR Implementation

8. Quality Based Procedures

9. 2014-15 HSFR Summary

10. 2014-15 HSFR Summary

11. 2014-15 QBP Methodology Updates

12. 2014-15 QBP Approach

13. Other Methodology Updates

14. What is HBAM? • HBAM is an evidenced-based, health-based funding formula. • HBAM estimates future expense levels based upon past service levels and unit costs, as well as population and health information. • Population information includes: • Age, Gender, Growth Projections, Socio-Economic Status (SES), Rural Geography • Health information includes indirect measures and health status • Care-type specific diagnostics and procedural information

15. HBAM Overview

16. HBAM – Expected Results

17. QBP Funding Calculation & Allocation

18. 2014-15 Mitigation Funding

19. HNHB Results – 2014-15 - Hospitals

20. HNHB Results – 2014-15 - CCAC • Mitigation Remains in CCAC Sector: -1% to +3% • HBAM represents approximately 30% of total funding allocation

21. Small Hospitals • Fewer than 2,700 acute inpatient and/or day surgery weighted cases in any two of the prior three years of the most recent data • Two Hospitals in HNHB • Haldimand War Memorial Hospital • West Haldimand General Hospital • Continue to receive funding on Global basis (no HBAM or QBP)

22. Thank you