Bulletin Number
        June 30, 1998
Direct inquiries to
         Ministry of Health
         Processing Office

(address below)
        Independent Health Facilities
Subject      Utilization/Payment control mechanism for independent health facilities
In April 1998 it was announced that the ministry intended to implement measures to control growth in facility fees billed by operators of independent health facilities (IHFs). The following control on payments to IHFs is being introduced as one component of a broad strategy to manage total expenditures for physician services to the 1.5% growth allowed under the 1997 OMA/MOH Agreement.

Effective for services performed on July 1, 1998, all facility fee claims for diagnostic services paid under the Independent Health Facilities Act will be reduced by 4.2%.

Claims for facility fee services should continue to be submitted using the amounts listed in the Schedule of Facility Fees. Reductions will be calculated and applied by the claims payment system. Claims for diagnostic facility fees will be paid at 95.8% of the amount listed in the Schedule of Facility Fees or the amount billed, whichever is less.

This reduction rate applies to all diagnostic facility fee services paid under the IHFA, including sleep study services which will become IHF services effective July 1, 1998.

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L4M 3P2
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P9N 1X9
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K7L 5A9
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Oshawa Centre.
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N4K 2H5
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Roberta Bondar Place
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Suite 801
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Suite 113
P7E 6T1
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P.O Box 1700 Stn. A
M5W 1G9
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Head Office
P.O. Box 38
Kingston, ON
K7L 5J2