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Alberta

Premier Smith urges PM Trudeau to talk Ethical Energy Security in meeting with US President Biden

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5 minute read

Dear Prime Minister Trudeau:

The arrival of President Joe Biden presents our nation with an opportunity of great significance. It is my request that the federal government uses its platform to focus on collaboration between the U.S. and Canada, highlighting the critical need for North American energy security.

We have a deep, long-standing relationship with the U.S. at both the federal and state levels, which is only growing in importance. In 2022, Alberta surpassed Ontario and Quebec as the largest provincial exporter of goods to the U.S. at $182.5 billion, with energy making up 85 per cent of exports to the United States. Alberta, by far, remains the single largest source of U.S. energy imports.

This economic reality, along with Russia’s invasion of Ukraine, has highlighted that North American energy security must be a top priority for the Government of Canada. I urge you to raise the need for better collaboration between Canada and the U.S. to ensure the continued and enhanced supply of sustainable, affordable, and reliable energy to the U.S.

I recommend that the two governments work to fast-track energy projects in the name of economic security for our democratic partners, as committed to by Deputy Prime Minister Chrystia Freeland. A similar effort is needed in critical minerals as the world shifts to lower emitting sources of energy.

Alberta, through both government policy and industry action, is leading the way on reducing emissions and driving the transition to new sources of energy. New investments in the province are global flagships in clean energy and emissions reductions technology. For example, Pennsylvania’s Air Products will create a world-scale net-zero hydrogen energy complex in Alberta, and Dow is advancing the world’s first net-zero carbon emission integrated polyethylene complex at its existing site near Edmonton. It is also worth noting that Canada’s oil sands operators have announced plans to spend $24 billion on emission-reduction projects by 2030 as part of their commitment to reach net zero by 2050. All of this amounts to a herculean effort undertaken by industry partners, and Alberta’s government, to position ourselves as the foremost leader in emissions reduction and responsible energy production.

As you know, management of oil and gas methane emissions is one of this country’s greatest climate success stories. Collaboration with the U.S. on methane emissions would both advance climate action, and address regulatory inconsistencies between the two countries. As of 2020, methane emissions from the upstream oil and gas sector in Western Canada have decreased by around 44 per cent from the 2014 baseline – ahead of our schedule of 45 percent by 2025. More evidence of Canada, and Alberta, leading the way.

Alberta is home to vast geological potential, an experienced, skilled, workforce, and has the necessary processing and transportation infrastructure in place to support a growing critical minerals sector. For example, technological advances to extract minerals from underground brine solutions are found throughout Alberta. These extraction technologies could result in a low emission, sustainable source of lithium to meet the demand of our emerging battery value-chain. We would encourage your government to work with the provinces, especially Alberta, on critical minerals and seize the opportunity to collaborate with the U.S. on enhancing North American supply chains.

As the owners and stewards of our world-class natural resources, any discussions involving energy security, natural resources, and trade must fully involve the provinces. I would be pleased to help assist you, and the federal government in advancing the work on North American energy security as well as developing the business cases to increase exports of clean Alberta energy, critical minerals and technologies to the U.S. As is only appropriate when discussing natural resources, and areas of exclusive provincial jurisdiction, I would also request that Premiers be invited to participate in a meeting with the President and his delegation.

I look forward to your response and welcome an opportunity to collaborate. We both agree that the world needs more Canada. It’s imperative that in a time of such uncertainty, and unaffordability, that Alberta, and Canada profile ourselves as the preferred supplier of responsibly produced, ethical energy to the U.S., North America, and the world.

Alberta

Alberta takes big step towards shorter wait times and higher quality health care

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From the Fraser Institute

By Nadeem Esmail

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
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Alberta

Alberta’s embrace of activity-based funding is great news for patients

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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.

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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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