Funding
BC Renal manages annual “life support funding” for kidney care services allocated by the Ministry of Health on a per patient/per year basis, as per the Renal Resource Management Model. The majority of dollars are allocated through the Provincial Health Services Authority (PHSA), with a portion flowing directly from the Ministry to the regional health authorities.
Funding for the regional health authority renal programs is provided by BC Renal through 26 bi-weekly payments based on the funding model and adjusted for actual patient volumes.
Each fiscal year, funding letters describing the specifics associated with the allocated amounts are sent to the health authority renal programs, with initial payments based on the prior year’s period 12 projections.
Dec to Jan
Around December/January, the projected and initially budgeted amounts are reconciled, and subsequent payments are adjusted as necessary to ensure cash flow and to reflect updated projected patient volumes.
March
Second funding adjustment for current fiscal year & preliminary funding letter for next fiscal year
April
In April (following the March 31 fiscal year-end), a final funding letter is issued to communicate final funding for the year based on actual patient volumes. Any short or over payments are recognized as payable or receivable by PHSA to the health authority renal programs, and this is settled in subsequent year’s funding transfers (as an addition or reduction to the regular bi-weekly payment for the year)
Sustainable Funding Solutions
Activity-Based Funding Model
- Flexible
- Patient-focused
- Equitable access
- Multidisciplinary care
2024/25 Renal Budget
- Direct care (CKD and dialysis), equipment, supplies and services
- Medications (accountability and transparency)
- Provincial vendor contracts
Indirect Care Funded Through HA Global Budgets
- Hospitalizations
- OR utilization/surgical procedures
- Radiology
- Lab services
Basis for Funding Calculations
- Activity-based funding model – Based on a schedule of costs for every element of direct patient renal care and excluding physician fees and referred-out services
- Fixed annual base funding – Based on previously agreed upon funding allocations. Community dialysis and clinic leases are funded based on actual costs of the health authority renal programs.
2022/23 Budget Allocation
Overall, administration is a small portion of the renal budget, with only 4% for BC Renal operating costs.
BC Renal Business Planning/Finance teams support budget request submissions, monitoring and regular reporting of actual costs compared to budget.
Regular reports are provided to the health authority renal programs with the following key information:
- Estimates of funding
- Capacity
- Utilization
- Historical comparisons and trends
- Funding rates
- Patient statistics captured by PROMIS