What is another common model of hospital funding besides service-based funding?

Block funding is a common model of hospital funding that involves providing healthcare facilities with a set amount of funding for a specific period, regardless of the number of services they provide. This model allows hospitals to have a predictable revenue stream that can assist in budgeting and resource allocation. It gives hospitals the flexibility to allocate funds toward various services and initiatives based on their specific needs, rather than being strictly tied to the volume of services rendered. This can be beneficial in managing costs and ensuring stable operations, particularly in systems where demand for services can fluctuate significantly.

In addition to being distinct from service-based funding, this approach can lead hospitals to focus on overall patient outcomes and care quality rather than just the number of procedures performed, which might sometimes lead to inefficiencies in care delivery.