How are hospitals funded and administered by the Province?
Most Ontario hospitals are governed by a Board of Directors. The Board has legal and management responsibility for the hospital and it is accountable to the ministry for the use of its provincial subsidy grants. The Ministry of Health and Long-Term Care (MOHLTC) ensures accountability to the hospital sector through various legal, and funding mechanisms. The MOHLTC monitors hospital activity through annual Operating Plans, in-year variance reports, and a number of other data submissions. Operating Plans describe how hospitals intend to run their operations over the coming fiscal year while the data submissions report on the outcomes. Ministry approval of Operating Plans is required before hospitals implement any changes to the services they provide. Funding for hospital services is governed under the authority of the Public Hospitals Act. Funding is based primarily on a principle of global (or base) funding budgets provided to each hospital annually. These budget allotments are based pr
