Definition
A method of funding health services based on amount and type of activity.
Comments
Guide for use:
Activity based funding has three essential elements:
Classification: Allocation of patients treated into groups which allow weightings to be applied. The groups should have resource use homogeneity (patients within a group should cost a similar amount to treat) and be clinically coherent (patients within a group should be clinically similar).
Activity data: Counting the patients treated.
Cost data: Determining the cost of treatment.
Context:Activity based funding in the context of health is a method of funding hospitals and health services whereby health services are funded for the provision of patient care based on the type and mix of patients they treat. A set amount is paid to the health service based on the relative cost of the group to which the patient is classified.
References
Battista P, Brophy J 2011. Casemix for Beginners. Proceedings of the National Casemix and Activity Based Funding Conference 2011. Viewed 25 September 2012, http://casemixconference2011.com.au/proceedings
This content Based on Australian Institute of Health and Welfare material. Attribution provided as required under the AIHW CC-BY licence.
This content Based on Australian Institute of Health and Welfare material. Attribution provided as required under the AIHW CC-BY licence.
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