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Alberta's Acute Care Funding Project.

P Jacobs1, E M Hall, J R Lave

  • 1Faculty of Medicine, University of Alberta, Edmonton.

Healthcare Management Forum
|March 4, 1993
PubMed
Summary

Alberta's Acute Care Funding Project (ACFP) uses case mix adjustments for equitable hospital budgeting. This system incentivizes reduced hospital stays and improved inpatient care efficiency.

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Area of Science:

  • Health economics
  • Healthcare management
  • Public health policy

Background:

  • Alberta implemented the Acute Care Funding Project (ACFP) in 1988.
  • The ACFP represents a significant shift from previous hospital funding methods.
  • The project focuses on equitable resource allocation within acute care settings.

Purpose of the Study:

  • To summarize and critique the ACFP's inpatient funding mechanisms.
  • To analyze the components of the ACFP, including performance measures and costing.
  • To discuss the evolution and remaining challenges of the ACFP.

Main Methods:

  • Analysis of the ACFP's case mix budgeting adjustments.
  • Examination of elements such as the hospital performance index and Refined Diagnostic Related Groups.
  • Review of costing mechanisms, typical and outlier cases.

Main Results:

  • The ACFP incorporates case mix adjustments for equitable global budgeting.
  • Key components include performance indices, Refined Diagnostic Related Groups, and case weights.
  • The system has evolved since its inception, with ongoing issues requiring attention.

Conclusions:

  • The ACFP provides incentives for reducing length of stay.
  • The funding model aims to increase the efficiency of inpatient care delivery.
  • Further refinements are needed to address outstanding challenges in the system.

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