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What if: The price of new provider fees reflected the value of the service?

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Published on Sep 6, 2011

The policy option presented here was chosen to stimulate discussion, but is only one of several options examined by the author in the report "The Use of Health Technology Assessment to Inform the Value of Provider Fees: Current Challenges and Future Opportunities."

Presenter and author: Don Husereau, University of Ottawa
This is one in a series that puts forward tangible policy options for addressing the sustainability of Canada's healthcare. The series presents possibilities and opportunities for improving efficiency and providing additional revenue.
On July 10, 2011, these options were presented to an international audience gathered in Toronto for the annual iHEA conference. They were selected by the presenters themselves, who are also authors of knowledge syntheses about healthcare financing that were commissioned by CHSRF (many other options are presented in their syntheses, which you will also find here).

This proposal is to develop a pan-Canadian approach to pricing provider services using health technology assessment (HTA) to establish the relative value of providing the new service and apply a price modifier to the provider fees. Thus, service fees would be modified upward for high-value services and downward for low-value services. If an HTA demonstrates that a service is of high value, a positive fee modifier would be set to incentivize increased use by providers. This pan-Canadian approach would build on an information-sharing network for new fees that already exists across provinces.

More at www.chsrf.ca

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