Question 1

Service-based funding is one model of hospital funding. Which of the following is another popular way to organize hospital funding?

Accepted Answer

Block funding involves providing a hospital with a predetermined amount of funding to cover all expenses for a specific period of time, usually a year. This provides the hospital with financial stability and allows for better budgeting and planning. Capitation-based funding involves a fixed amount of money paid per patient, regardless of the services they require. The Canada Health Transfer and Equalization payments are funding models for the entire Canadian healthcare system, not specific to hospitals.

Question 2

Which of the following represents a change in practice that reduces hospital costs?

Accepted Answer

Same-day admissions reduce hospital costs by avoiding the need for overnight stays and reducing the use of hospital resources. The other options may not necessarily result in a direct reduction of hospital costs.

Question 3

Which of the following is a reason for rising drug costs in the Canadian health care system?

Accepted Answer

As more people require multiple medications to manage their health conditions, the demand for these drugs has increased, leading to rising costs.

Question 4

How are public long-term beds funded?

Accepted Answer

Public long-term care beds are typically funded through a co-payment model where the cost is shared between the client and the provincial or territorial government.

Question 5

What is capitation-based funding?

Accepted Answer

Capitation-based funding is a funding formula used in primary care reform that pays physicians a set amount per patient for a specified period of time, regardless of how many services are provided. This incentivizes physicians to focus on preventative care and overall health outcomes rather than just treating illnesses as they arise.

Question 6

What coverage is available for a low-income family that does not have a private medical plan and has a child with a chronic condition that is not able to afford the medications that their child requires?

Accepted Answer

Catastrophic drug cost coverage is designed to help families who face high medication costs that they cannot afford, especially in cases of chronic conditions.

Question 7

What can be a negative consequence of hospital merging?

Accepted Answer

Hospital merging may result in layoffs and a loss of seniority among staff as the new organization may prioritize retaining employees with more specialized skills or experience. Duplicate services may also be consolidated, potentially leading to layoffs or a reduction in the range of services offered, but this is not universally negative. The centralization of support services may increase efficiency and reduce costs, but this is not a universally negative consequence of merging. Clearer definition of professional roles may be positive or negative depending on the specifics of the merger.

Question 8

What are equalization payments?

Accepted Answer

Equalization payments are an allowance from the federal government to provinces or territories that have less money than the national average, enabling them to provide comparable levels of public services, including health services, at similar taxation levels.

Question 9

Brand-name drugs cost more than generic drugs and are protected under a piece of legislation called the Patent Act. How long are brand-name drug patents applicable in Canada?

Accepted Answer

Brand-name drug patents are applicable for 20 years in Canada, after which they can be produced and sold as generic drugs.

Question 10

Which of the following is a common model of payment for physicians?

Accepted Answer

Fee-for-service (FFS) is the most common model of payment for physicians. Under this model, physicians are paid for each service they provide to patients. This can include everything from office visits to surgeries, and the fee is typically determined by the complexity of the service provided.

Quiz 8: The Dollars and Sense of Health Care Funding