Activity Based Funding is a funding model for hospital care for inpatient and day-case services. This means where services are funded under an Activity Based Funding model, a specified price is paid to each hospital for each weighted unit of inpatient work and each weighted unit of day-case work.
Activity Based Funding was initially implemented in the Acute hospital setting in 2016. The majority of hospitals are now funded by this method for 70% of their total funding, moving away from historic block funding.
As the Health Service Executive are also heavily involved in the Activity Based Funding project, we have also asked the Health Service Executive to provide a further update to the Deputy directly, with additional operational context in relation to the rollout/status of Activity Based Funding from the perspective of the Health Service Executive.
The Department is currently engaged with the Health Service Executive to determine next steps in the implementation of Activity Based Funding project and will provide further information at the conclusion of this engagement.