Alberta
Doubling surgical capacity in Rocky Mountain House
Rural Albertans will be able to access surgeries quicker and closer to home now that the expansion and renovation of the Rocky Mountain House Health Centre is complete.
The Rocky Mountain House Health Centre has been providing residents with health care since 1971, including surgical services. Alberta Infrastructure has completed an addition to the facility, which includes a new operating room. This will enable approximately 120 Albertans per month to receive surgery, doubling the number of monthly surgeries. This additional, brand-new operating room is also expected to decrease the wait lists for surgeries.
The expanded Rocky Mountain House Health Centre provides an additional 440 square metres (4,736 square feet) and includes:
- a new operating room,
- 6 additional recovery beds,
- a patient support area, and
- an updated medical device reprocessing department.
The new spaces can be accessed from the existing site thanks to the addition of an upgraded hallway that connects the two buildings.
“Completing the expansion and renovation of the Rocky Mountain House Health Centre is a significant step forward in delivering Alberta Surgical Initiative projects province wide. This investment into health care infrastructure will increase surgical capacity, helping Albertans get treatment when and where they need it.”
The Rocky Mountain House Health Centre upgrade is part of the Alberta Surgical Initiative (ASI), which aims to enhance surgical capacity across the province by expanding and maximizing existing health care space. Over the next three years, the 2024 Capital Plan is providing $313 million for ASI projects throughout the province.
Alberta Infrastructure and Alberta Health Services share the responsibility for delivering ASI projects. Alberta Health Services leads the delivery of smaller projects, while Alberta Infrastructure delivers capital projects over $5 million.
“Albertans deserve timely access to surgeries, and they should be able to get them close to home. The expansion and renovation of the Rocky Mountain House Health Centre will increase its capacity so more Albertans can get the surgeries they need when they need them. Through the Alberta Surgical Initiative, we are improving access to surgical care and funding projects across the province, including in rural communities like Rocky Mountain House.”
Alberta Infrastructure is working on 20 ASI projects in communities across Alberta, including Brooks, Calgary, Camrose, Edmonton, Fort Saskatchewan, Innisfail, Lethbridge, Olds, Ponoka, St. Albert and Stettler. Lethbridge will be the next community to benefit from a completed ASI project. The expansion of two operating rooms and more surgical inpatient rooms at the Chinook Regional Hospital is anticipated to be completed later this fall.
“The expanded Rocky Mountain House Health Centre will help ensure more residents can access surgeries and receive the care they need in a timely manner. Investments like these in rural Alberta matter and I’d like to thank Minister Guthrie and Minister LaGrange for delivering on this project that will double our surgical capacity in Rocky Mountain House.”
Quick facts
- The total budget for the Rocky Mountain House Health Centre ASI project was $15 million.
- This Alberta Infrastructure project was completed on time and on budget. Approximately 85 construction-related jobs were created during the project.
- In addition to the new building, other renovations include new mechanical and electrical building systems.
- Alberta Infrastructure is managing other ASI projects at the following locations:
- Brooks Health Centre
- Calgary
- Alberta Children’s Hospital
- Foothills Medical Centre
- South Health Campus
- Camrose – St. Mary’s Hospital
- Edmonton
- Grey Nuns Community Hospital
- Misericordia Community Hospital
- Royal Alexandra Hospital
- Walter C. Mackenzie Centre (University of Alberta Hospital)
- Fort Saskatchewan Community Hospital
- Innisfail Health Centre
- Lethbridge – Chinook Regional Hospital
- Olds Hospital and Care Centre
- Ponoka Hospital and Care Centre
- St. Albert – Sturgeon Community Hospital
- Stettler Hospital and Care Centre
- Other ASI projects completed by Alberta Infrastructure:
- Grande Prairie Regional Health Centre (completed in July 2022)
- University of Alberta (completed September 2023)
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.
Nadeem Esmail
Senior Fellow, Fraser Institute
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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