VICTORIA, B.C. - B.C. hospitals could soon be competing for business under a new health funding formula expected to be introduced today.

Health Services Minister Kevin Falcon is poised to announce a patient-based funding system that includes rewarding hospitals for treating more patients and cutting wait times.

Falcon is also expected to form a new organization to oversee future health funding in B.C.

The Hospital Employees Union and Opposition New Democrats say forcing hospitals to compete with each other for services hurts the over-all quality of health care because some difficult services like chronic illnesses end up getting the short shrift.

Falcon would not comment ahead of making his announcement.

But he has said that health-care costs are rising and innovations are needed to improve services and save money.