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Operating an Independent
Health Facility
Introduction to Independent
Health Facilities
Diagnostic imaging is an integral pillar of Canada’s
healthcare industry — professionals in this field are
responsible for the diagnosis of thousands of medical
conditions each day.
In Ontario, Independent Health Facilities (IHF) such as
radiology clinics, X-ray labs, and mammography centers are
licensed by the Ministry of Health.
Ministry of Health and Long-Term Care proposed regulatory
changes that are aimed at giving the Ministry the option of
issuing Independent Health Facility (“IHF”) licences to so-called
“Community-Based Speciality Clinics”.
Overview of IHFs
Created Under the Independent Health Facilities
Act (Ontario)
● Perform procedures that are funded by the Ontario
Health Insurance Plan
● The IHFA permits the Minister of Health and Long-
Term Care to fund these procedures in non-hospital
premises.
IHFs maybe:
1. Diagnostic facilities that provide specific classes of
diagnostic imaging, pulmonary functions or sleep
study tests; or
2. Care facilities that provide surgical and other
therapeutic procedures such as dialysis, abortion,
laser dermatologic surgery and ophthalmic, vascular,
plastic and gynaecological surgery.
● The IHFA is explicitly stated not to apply to certain
health facilities, persons, places and services.
● There are over 1000 IHFs licensed in Ontario.
● The largest category of services provided in IHFs are
diagnostic radiology and ultrasound services
The IHFA prohibits anyone from charging facility fees.
“Facility Fees” are defined under the IHFA as:
(a) a charge, fee or payment for or in respect of a service or operating cost
that,
○ supports, assists and is a necessary adjunct, or any of them, to an
insured service, and
○ is not part of the insured service, or
(b) a charge, fee or payment for or in respect of a service or class of
services designated by the Minister [under the Act].
Corporate Structure
Community-Based Specialty Clinics established as
not-for-profit entities.
● A Licence may be held by either an individual or
corporation, but may not be held by a corporation that
operates a public hospital.
● A partnership is not permitted to hold a Licence.
The Licensing Regime
A Licence must be obtained from the Director of Independent
Health Facilities
Submission of a proposal in response to a request for proposals issued by the Ministry for the
establishment and operation of an IHF.
The IHFA permits the Director to issue a Licence if in his or her opinion:
(i) The proposal meets the specified criteria in the RFP;
(ii) The quality and standards of the facility or the services to be provided in the facility will comply
with the regulations made under the IHFA
(iii) the licensee will operate the IHF competently and with honesty and integrity; and
(iv) the licensee will establish and maintain a system to ensure the monitoring of the results of the
services provided in the IHF.
● Licences may be transferred or an IHF may relocate
only upon the consent of the Director.
● The Director may request any information he or she
deems necessary in order to decide whether to
approve a relocation.
● Licences are issued for a maximum of five (5) years,
but may be renewed upon expiration.
The IHFA permits the Director to revoke, suspend or refuse to
renew a Licence where, among other things:
(a) The licensee or any member of the licensee’s staff is in contravention of
the IHFA or its regulations;
(b) There is a breach of a limitation or condition of the Licence;
(c) Any person has made a false statement in the proposal submitted to the
Director in respect of the IHF;
(d) Any person has made a false statement in the application for renewal of
the Licence or in any report, document or other information required under
the IHFA
There are reasonable grounds to believe that:
● The IHF is not being or will not be operated in accordance with the law
and with honesty and integrity;
● The IHF is not being or will not be operated in a responsible manner in
accordance with the IHFA or any other Act or regulation that applies to
the IHF;
● The IHF is being operated or will be operated in a manner that is
prejudicial to the health, safety or welfare of any person
(f) The licensee has ceased operating the IHF for a
period of at least six (6) months and is not taking
reasonable steps to prepare the facility to re-open.
The Director may order an immediate suspension of a
Licence if he or she has reasonable grounds to believe the
IHF
Monitoring
Inspections
● The IHFA permits the Minister to appoint inspectors
and authorizes the Director to direct such inspectors.
● It is necessary to ensure that the IHFA and the limits
and conditions of the Licence are being complied with.
Assessments
● An assessor appointed under the authority of the
IHFA carries out assessments of the quality and
standards of the services provided in an IHF.
● The Director is under no obligation to notify the
licensee that an assessment will be carried out.
Quality Advisor
● The General Regulation under the IHFA mandates that
an IHF must appoint a quality advisor to advise the
licensee with respect to the quality and standards of
services provided in an IHF.
● The quality advisor must be a health professional who
provides services in or in connection with the IHF and
must have adequate training that enables him or her to
advise the licensee.
● The largest category of services provided in IHFs are
diagnostic radiology including diagnostic imaging centers.
● It is an integral pillar of Canada’s healthcare industry —
professionals in this field are responsible for the diagnosis
of thousands of medical conditions each day.
● Doctors may have hands-on training to help patients
manage illness, and investors may have the capital to
acquire a medical facility. But very few people understand
the bureaucratic process associated with transferring IHF
licenses.
● Defining your vision and goals is key to ensuring
successful results.
● Whether you’re looking to grow your radiology practice
or require funding for nuclear medicine research, a
simple needs analysis can help you understand what you
want for your business.
Operating an Independent Health Facility

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Operating an Independent Health Facility

  • 1. Operating an Independent Health Facility Introduction to Independent Health Facilities
  • 2. Diagnostic imaging is an integral pillar of Canada’s healthcare industry — professionals in this field are responsible for the diagnosis of thousands of medical conditions each day.
  • 3. In Ontario, Independent Health Facilities (IHF) such as radiology clinics, X-ray labs, and mammography centers are licensed by the Ministry of Health.
  • 4. Ministry of Health and Long-Term Care proposed regulatory changes that are aimed at giving the Ministry the option of issuing Independent Health Facility (“IHF”) licences to so-called “Community-Based Speciality Clinics”.
  • 6. Created Under the Independent Health Facilities Act (Ontario) ● Perform procedures that are funded by the Ontario Health Insurance Plan ● The IHFA permits the Minister of Health and Long- Term Care to fund these procedures in non-hospital premises.
  • 7. IHFs maybe: 1. Diagnostic facilities that provide specific classes of diagnostic imaging, pulmonary functions or sleep study tests; or 2. Care facilities that provide surgical and other therapeutic procedures such as dialysis, abortion, laser dermatologic surgery and ophthalmic, vascular, plastic and gynaecological surgery.
  • 8. ● The IHFA is explicitly stated not to apply to certain health facilities, persons, places and services. ● There are over 1000 IHFs licensed in Ontario. ● The largest category of services provided in IHFs are diagnostic radiology and ultrasound services
  • 9. The IHFA prohibits anyone from charging facility fees. “Facility Fees” are defined under the IHFA as: (a) a charge, fee or payment for or in respect of a service or operating cost that, ○ supports, assists and is a necessary adjunct, or any of them, to an insured service, and ○ is not part of the insured service, or (b) a charge, fee or payment for or in respect of a service or class of services designated by the Minister [under the Act].
  • 11. Community-Based Specialty Clinics established as not-for-profit entities. ● A Licence may be held by either an individual or corporation, but may not be held by a corporation that operates a public hospital. ● A partnership is not permitted to hold a Licence.
  • 13. A Licence must be obtained from the Director of Independent Health Facilities Submission of a proposal in response to a request for proposals issued by the Ministry for the establishment and operation of an IHF. The IHFA permits the Director to issue a Licence if in his or her opinion: (i) The proposal meets the specified criteria in the RFP; (ii) The quality and standards of the facility or the services to be provided in the facility will comply with the regulations made under the IHFA (iii) the licensee will operate the IHF competently and with honesty and integrity; and (iv) the licensee will establish and maintain a system to ensure the monitoring of the results of the services provided in the IHF.
  • 14. ● Licences may be transferred or an IHF may relocate only upon the consent of the Director. ● The Director may request any information he or she deems necessary in order to decide whether to approve a relocation. ● Licences are issued for a maximum of five (5) years, but may be renewed upon expiration.
  • 15. The IHFA permits the Director to revoke, suspend or refuse to renew a Licence where, among other things: (a) The licensee or any member of the licensee’s staff is in contravention of the IHFA or its regulations; (b) There is a breach of a limitation or condition of the Licence; (c) Any person has made a false statement in the proposal submitted to the Director in respect of the IHF; (d) Any person has made a false statement in the application for renewal of the Licence or in any report, document or other information required under the IHFA
  • 16. There are reasonable grounds to believe that: ● The IHF is not being or will not be operated in accordance with the law and with honesty and integrity; ● The IHF is not being or will not be operated in a responsible manner in accordance with the IHFA or any other Act or regulation that applies to the IHF; ● The IHF is being operated or will be operated in a manner that is prejudicial to the health, safety or welfare of any person
  • 17. (f) The licensee has ceased operating the IHF for a period of at least six (6) months and is not taking reasonable steps to prepare the facility to re-open. The Director may order an immediate suspension of a Licence if he or she has reasonable grounds to believe the IHF
  • 19. Inspections ● The IHFA permits the Minister to appoint inspectors and authorizes the Director to direct such inspectors. ● It is necessary to ensure that the IHFA and the limits and conditions of the Licence are being complied with.
  • 20. Assessments ● An assessor appointed under the authority of the IHFA carries out assessments of the quality and standards of the services provided in an IHF. ● The Director is under no obligation to notify the licensee that an assessment will be carried out.
  • 21. Quality Advisor ● The General Regulation under the IHFA mandates that an IHF must appoint a quality advisor to advise the licensee with respect to the quality and standards of services provided in an IHF. ● The quality advisor must be a health professional who provides services in or in connection with the IHF and must have adequate training that enables him or her to advise the licensee.
  • 22. ● The largest category of services provided in IHFs are diagnostic radiology including diagnostic imaging centers. ● It is an integral pillar of Canada’s healthcare industry — professionals in this field are responsible for the diagnosis of thousands of medical conditions each day. ● Doctors may have hands-on training to help patients manage illness, and investors may have the capital to acquire a medical facility. But very few people understand the bureaucratic process associated with transferring IHF licenses.
  • 23. ● Defining your vision and goals is key to ensuring successful results. ● Whether you’re looking to grow your radiology practice or require funding for nuclear medicine research, a simple needs analysis can help you understand what you want for your business.