Health Care Funding Models

Section 7, Funding Approach of Building a Stronger Foundation: A Framework for Planning and Evaluating Community-Based Services in Canada identifies four funding models along a continuum:

• utilization-based, or fee-for-service
  
• population-based, often called capitation
  
• needs-based, where funds are allocated based on the identified needs of the target population
  
• budget/request-based, where the provider asks for money and the funder gives it
  

It's worth reading the section on funding approaches. It's a brief and readable overview of funding models that have been used.

I think there's a good case for population-based funding, mixed with budget/request. The basic funding would be population-based. Certain initiatives will always need some new, outside, or extraordinary funding (e.g. building a new building, buying major equipment, special programs, education campaigns, etc).

I'll try to put my del.icio.us links on health care funding into this blog somewhere, so you can read some other articles I've found.