Alberta
A Toronto Take on the United We Roll Convoy

When you live in the world’s second largest country it’s easy to understand how people from one part might have difficulty understanding people from another region thousands of kilometres away. Undoubtedly that’s one of the issues facing the United We Roll Convoy. Oilfield workers from the prairies just don’t make a lot of sense to, say a banker from Toronto. What does that banker think when dozens of big trucks clog up traffic in front of the Parliament Buildings in Ottawa? Is that person likely to take a bit of time and get to know why they’ve taken their big trucks half way across the continent? Or is that banker just appalled at them for promoting the oil industry in such a demonstrative manner.
The brave workers (and former workers) who headed out on the United We Roll Convoy knew they were taking a substantial risk before setting out. They knew this could go sideways, but they were desperate to send a message. Alberta’s oil is landlocked and certainly hundreds of thousands of people are affected. Families, businesses, and communities wait for an indeterminate amount of time for Canada’s pipeline issues to work themselves out with no guarantee it will ever happen. So they gassed up and gathered at Gorts Truckwash in Red Deer and they launched this project. They didn’t have a marketing firm formulate a message for them. They didn’t clamp down on any of their drivers and insist that their messaging go through a single spokesperson. They just hoped..
Their reception was not what they were dreaming of. But they did get a few chances to get their message worked in there with whatever the nation’s media wanted to talk about. It may be that the passing of time will help Canadians focus in on what it was that they wanted to say. But there’s no guarantee that it will ever get through to that banker in Toronto. Well. That’s not totally true. There’s one banker from Toronto who really backs these people. That’s because like a reporter embedded with a military battalion, he’s been embedded in the middle of Alberta’s Oil Country for some time now. Here’s an opinion Canadians haven’t heard yet. From a banker. From Toronto.
Alberta
Alberta takes big step towards shorter wait times and higher quality health care

From the Fraser Institute
On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.
To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.
Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.
Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.
The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.
This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.
In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.
The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.
Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.
While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.
Alberta
Alberta’s embrace of activity-based funding is great news for patients

From the Montreal Economic Institute
Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.
“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”
Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.
Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.
An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.
Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.
In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.
“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”
The governments expects to roll-out this new funding model for select procedures starting in 2026.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
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