Physicians of SCO Health Service in Ottawa recently entered into an Alternative Funding Plan agreement with the Ministry for Health and Long-Term Care in Ontario. The plan provides agreed monthly funding to the SCOHS Academic Medical Organization in return for medical services. Funds are then paid to physician Practice Plans for services provided. The plan almost entirely eliminates fee-for-service billing, and also provides funding for teaching and research activities. The process of establishing the plan has provided some insights that might be useful to organizations undertaking the same process. Some of these insights are shared in this paper.
