Activity based funding
Glossary Item Attributes
Identifying and definitional attributes
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A method of funding health services based on amount and type of activity.
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 (or teaching) based on the type and mix of patients they treat (or trainees they teach). A set amount is paid to the health service based on the relative cost of the group to which the patient (or trainee) is classified.