Hospitals face huge change to funding model

Activity-based-funding system to be rolled out

Leo Varadkar

A radical new funding model for hospitals will be launched in January, with the HSE set to move away from block grants in favour of distributing a total of €3 billion among 38 hospitals for the individual patients they treat.

The new system, called activity-based-funding (ABF), will replace the system whereby hospitals receive an annual block grant based on historic funding needs.

In 2016, hospitals will be paid for all day case and ...