Alberta
Massive funding boosts kick off Alberta’s transition to fully comprehensive care
Dr. Paul Parks, president, Alberta Medical Association
Canada signs more than $1 billion bilateral agreement with Alberta to improve health care over three years
From: Health Canada
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 careStabilization 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.
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:
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.
Other recently announced supports for primary health care include:
Related information |
From the Fraser Institute
By Tegan Hill
Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.
The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.
Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.
Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.
Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.
Fortunately, the Smith government can mitigate this volatility.
The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.
Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.
Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.
And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.
From the Fraser Institute
By Tegan Hill and Austin Thompson
In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.
Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?
Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.
Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.
Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.
Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.
While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.
For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in Calgary, Edmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.
There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.
It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.
Tegan Hill
Director, Alberta Policy, Fraser Institute
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