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Alberta

Massive funding boosts kick off Alberta’s transition to fully comprehensive care

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Dr. Paul Parks, president, Alberta Medical Association

Canada signs more than $1 billion bilateral agreement with Alberta to improve health care over three years

This investment will increase access to a primary health provider, reduce wait times for mental health services, and provide greater access to health data.

Canadians want and deserve a health care system that provides timely access to health services whenever and wherever they are needed. That is why the Government of Canada is investing over $200 billion over 10 years, which includes $25 billion for tailored bilateral agreements with provinces and territories, to support the Working Together to Improve Health Care for Canadians plan.

Today, the Honourable Mark Holland, Canada’s Minister of Health, and the Honourable Adriana LaGrange, Alberta Minister of Health, announced a bilateral agreement to invest $1.06 billion over the next three years, marking a crucial step in a 10-year plan for collaboration. This includes $285 million per year in new funding by the Government of Canada and continuing $70 million per year in previously-announced mental health and substance use funding, which will help accelerate efforts already underway in Alberta to improve health care access and services.

Through this federal funding, Alberta has a three year action plan to deliver improvements to its health care system by 2026, including:

  • Increasing access to primary care providers for Albertans and reducing emergency department visits that could have been addressed by a family medicine office. This will be achieved by expanding team-based care and enhancing virtual care, and increasing the number of appointments available to patients.
  • Funding community providers to increase diagnostic imaging capacity in the province, reducing wait times for CT scans and MRIs.
  • Improving patient care by enhancing Albertans’ ability to access digital health services and their own health information by implementing e-referral services and accelerating the secure exchange of data across the health system.
  • Expanding integrated services for youth mental health services in the province through school-based and community day programs, and offering more supports for youth with complex needs as they transition into adult services.
  • Reducing median wait times for community mental health and substance use services by establishing new and improving existing treatment spaces, along with prioritizing culturally appropriate Indigenous community supports.
  • Ensuring that First Nations and Métis people have access to high-quality, culturally safe care that meets their unique health needs. This will be achieved through dedicated funding for initiatives to enhance access to primary care in Indigenous communities, and funding for communities to develop health workforce capacity and infrastructure to improve the collection and use of health information and data.
  • Improving access to health care for underserved Albertans, including through expanded community pilots that bring testing services to rural, remote and Indigenous communities, advancing French-language health services, and greater clinical care for women.

Progress on these initiatives and broader commitments will be measured against targets which Alberta will publicly report on annually.

Through this new agreement, Alberta will improve how health information is collected, shared, used and reported to Canadians; streamline foreign credential recognition for internationally educated health professionals; facilitate the mobility of key health professionals within Canada; and fulfill shared responsibilities to uphold the Canada Health Act to protect Canadians’ access to health care that is based on need, not the ability to pay.

Recognizing the significant disparities in Indigenous health outcomes, the Government of Canada and the Government of Alberta also commit to meaningfully engage and work together with Indigenous partners to support improved access to quality and culturally appropriate health care services. Alberta’s action plan is informed by continued engagement with its Indigenous partners and recent discussions involving the federal government. All orders of government will approach health decisions in their respective jurisdictions through a lens that promotes respect and reconciliation with Indigenous Peoples.

Alberta and the federal government will continue working together to improve access to health services and deliver tangible results to all residents across the province, including responding to the needs of Indigenous and other underserved and disadvantaged populations.

Quotes

“Our government is working together with provinces and territories to get Canadians the healthcare they need. This agreement is an important step in our collaboration with Alberta to take measurable actions to transform our health care system. The funding will help improve access to primary care and create better mental health services in Alberta. Together, we will continue working to achieve better health outcomes for all Canadians.”

The Honourable Mark Holland
Minister of Health of Canada

“Mental health is health, and through this agreement, we will be working with Alberta to integrate mental health and substance use care as a full and equal part of our universal health care system. This agreement will strengthen the capacity of family health providers, reduce substance use harms, and expand virtual care for youth to improve access to quality and timely mental health care and substance use supports. Together, we must ensure that all Canadians have access to supports and services for their mental health and well-being – when they need them, wherever they need them.”

The Honourable Ya’ara Saks
Minister of Mental Health and Addictions and Associate Minister of Health of Canada

“Alberta’s government is taking a serious look at the way health care is being delivered in our province. This is why we are refocusing our health care system to ensure Albertans have access to timely care, when and where they need it. This initial funding from the federal government is a good start and will support our shared health priorities of expanding access to primary care across the province and especially in our Indigenous communities, supporting our health care workers, improving access to quality mental health, and modernizing our health systems.”

The Honourable Adriana LaGrange
Minister of Health of Alberta

“Alberta’s government is supporting Albertans to improve their mental health and recover from the deadly disease of addiction as we build out the Alberta Recovery Model and refocus our provincial healthcare system. We are doing this by increasing access to CASA Mental Health Classrooms across the province, building more bed based mental health treatment capacity for youth, and improving access to mental health and addiction treatment services in communities. This initial funding from the federal government will offer some support to these made in Alberta initiatives as we build a better system of mental health and addiction care for Albertans.”

The Honourable Dan Williams
Minister of Mental Health and Addiction of Alberta

Quick facts

  • The Working Together investment includes $25 billion for tailored bilateral agreements with provinces and territories, a guaranteed 5% Canada Health Transfer (CHT) increase for the next five years—amounting to $17.5 billion—and a one time CHT $2 billion top-up to address urgent needs of emergency rooms and paediatric hospitals delivered in June 2023. Combined, these investments provide provinces and territories the flexibility to address the unique needs of their populations and geography, and accelerate health care system improvements.
  • Budget 2023 outlined the Government of Canada’s plan to invest over $200 billion over 10 years, including $46.2 billion in new funding for provinces and territories, to improve health care for Canadians. Within this funding, $25 billion is allocated through tailored bilateral agreements to address the unique needs of their populations and geography in four shared health priorities:
    • expanding access to family health services, including in rural and remote areas;
    • supporting health workers and reducing backlogs;
    • increasing mental health and substance use support; and
    • modernizing health care systems with health data and digital tools.
  • All provinces and territories are already making considerable investments to advance progress in all four of these priority areas, and the new federal funding is complementing and expanding those efforts.
  • As part of these bilateral agreements, provinces and territories are developing action plans that outline how funds will be spent and how progress will be measured to demonstrate to Canadians that improvements are occurring in Canada’s health care system. Alberta’s initial 3-year Action Plan can be found here.
  • Budget 2017 committed $11 billion over 10 years in federal funding to provinces and territories to improve access to home and community care, and mental health and addictions services for Canadians. Bilateral agreements were signed with provinces and territories to access the first six years of funding. The final four years of funding for mental health and addictions are included in the new Working Together bilateral agreements.
  • The Government is also working with provinces and territories to implement a second bilateral agreement focused on helping Canadians age with dignity close to home, with access to home care or care in a safe long-term care facility. This agreement will include the remaining $2.4 billion over four years to improve access to home and community care from Budget 2017; and the $3 billion over five years for long-term care from Budget 2021 to apply standards of care in long-term care facilities and help support workforce stability.

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From the Province of Alberta

This funding will be an essential transitional step to ensure doctors can continue to provide this care as we rapidly transition to a funding model that supports fully comprehensive care.”

Dr. Paul Parks, president, Alberta Medical Association

New funding to stabilize primary health care

Stabilization funding is coming soon as Alberta’s government continues working to improve primary health care across the province.

The government is pulling out all the stops to stabilize, strengthen and improve Alberta’s primary health care system. Additional funding of $200 million over two years will improve access to family physicians and help ensure primary health care is available for every Albertan when and where they need it.

This funding is enabled through the new Canada-Alberta Health Funding Agreement with the federal government. The agreement represents a total of approximately $1.1 billion in additional health care funding over three years for shared priorities.

“We have been clear: Albertans must be able to access the primary care they need, and family physicians are critical to that care. We are prepared to do the hard work necessary to close the gap between Albertans needing care and those who are able to provide it, and this is one more step forward. We will continue to work with the AMA and all our partners to ensure that our health care system is one Albertans can be proud of.”

Danielle Smith, Premier

Stabilization funding is an important transitional measure identified through work under the memorandum of understanding (MOU) between the minister of health and the Alberta Medical Association (AMA), signed earlier this fall. The AMA has been advocating for family physicians and rural generalists through its work under the MOU. Alberta’s government will continue to engage with the AMA as it works to develop a new, sustainable physician comprehensive care model, which will also dictate how this additional funding will be distributed.

In addition to work between the government and the AMA, the Comprehensive Care Task Force will, in the new year, provide a first draft of recommendations that will include additional short-term stabilization actions to help family doctors continue to practise comprehensive care and bridge the gap until a new physician comprehensive care model is developed.

These short-term actions will:

  • Address key issues or pressures in the system such as doctor retention, administrative burden and inflationary costs.
  • Be implemented quickly and efficiently.
  • Be transitional until the new payment model is ready.

“We are committed to securing primary health care as the foundation of the entire health care system, and family physicians are fundamental to our plan. I committed to work with the AMA to identify immediate measures to improve primary health care and this is exactly what we are doing through this funding. It will help stabilize the system as we transition to a new physician comprehensive care model, so Albertans can receive the health care they need and deserve.”

Adriana LaGrange, Minister of Health

Alberta’s government is committed to finalizing a sustainable physician comprehensive care model that will address the concerns of family physicians and rural generalists and ensure Albertans can access the care they need.

“Our doctors want to provide comprehensive, lifelong care for patients and we are encouraged to have the opportunity to work collaboratively with our provincial government. The reality is family physicians and rural generalists have truly been struggling to maintain viable practices. This funding will be an essential transitional step to ensure doctors can continue to provide this care as we rapidly transition to a funding model that supports fully comprehensive care.”

Dr. Paul Parks, president, Alberta Medical Association

Other recently announced supports for primary health care include:

  • Ongoing base compensation for primary care physicians is expected to be $1.76 billion in the current fiscal year.
  • Committing to create a primary care organization within the refocused provincial health care system to coordinate primary health care services and provide transparent provincial oversight, with the goal of ensuring every Albertan will be attached to a family physician or primary care provider.
  • Investing $57 million over three years to provide family doctors and nurse practitioners with support to help manage their increasing number of patients.
  • Investing $40 million over two years to support Primary Care Networks.
  • Investing $12 million for the Community Information Integration and Central Patient Attachment Registry, enabling doctors and their teams to share patient information from their electronic medical record to Alberta Netcare.
  • Committing to implement recommendations from the Modernizing Alberta’s Primary Health Care System initiative through a phased approach.
  • Creating a primary health care division within Alberta Health.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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