Alberta
Province trumpets $105 million in new health spending for Rural Health Facilities Revitalization Program
Strengthening rural health care
Budget 2023 expands rural health supports so Albertans can have additional access to modern health facilities and the care they need where and when they need it.
Alberta’s government is committed to expanding and modernizing rural hospitals and other health facilities across the province to protect quality health care, grow system capacity and support the best front-line health care workers in the world.
Having access to quality health care when and where Albertans need it includes expanding capacity to provide better access for Albertans living in rural and remote areas of the province.
“We are making sure we have the necessary funding in place to build and strengthen health care in our rural communities and address barriers to care for those looking for support and treatment close to home and family. This work includes programs that focus on how to recruit, retain and even train more physicians, nurses and other professionals in areas outside of the cities.”
Budget 2023 provides $105 million over three years for the Rural Health Facilities Revitalization Program, including $75 million in additional funding for capital projects in rural Alberta.
The program supports strategic renovations and developments in health facilities throughout the province, with an emphasis on emergency departments, EMS stations, surgical and dialysis clinics, and other clinical services to improve access to health care in rural Alberta.
Expanding capacity in the health care system also means having health care workers to fill those spots. In response, Alberta’s government launched the Health Workforce Strategy to attract and retain the health care workers needed now and create more training opportunities for local students and internationally trained medical graduates.
“All Albertans, no matter where they live, need and deserve access to our health system. Physicians are a critical part of that system, especially in rural areas where we are trusted to support the needs of neighbours, friends and colleagues during all phases of life. It is a special calling to work in rural health care, but it can be tremendously rewarding for those who pursue it.”
Rural Albertans are especially affected by the nationwide shortage of health care workers. To address this growing need, the Health Workforce Strategy provides $113 million to add 100 residency training spaces for newly graduated doctors, particularly in rural areas and specialist fields. Creating these new training spaces will provide more opportunities for Alberta students to learn, train and practise in their home communities.
In addition to this investment, a further $1 million will go toward exploring ways that regional post-secondary institutions, such as the University of Lethbridge and Northwestern Polytechnic in Grande Prairie, can help deliver medical education outside of Edmonton and Calgary.
“Whether it’s emergency care or surgeries, primary care or continuing care, Albertans deserve equitable health care services in their communities. I am proud of the investments government is making through Budget 2023, both with infrastructure funding and workforce planning strategies, to help support the future of rural health care in our province.”
This year’s budget also funds the new agreement with the Alberta Medical Association, further stabilizing the health system and focusing on Alberta’s rural communities. Under the agreement, more than $250 million over four years will go to addressing pressures, including recruitment and retention programs so more Albertans can access family doctors, and supporting physicians so their practices remain viable.
Budget 2023 secures Alberta’s future by transforming the health care system to meet people’s needs, supporting Albertans with the high cost of living, keeping our communities safe and driving the economy with more jobs, quality education and continued diversification.
Quick facts
- The Rural Health Revitalization Program provides capital funding for revitalizing select rural health facilities throughout the province.
- Budget 2023 invests $105 million over three years for the Rural Health Facilities Revitalization Program. This includes $75 million in additional funding for new capital projects in rural Alberta.
- To date, about $65 million has been committed to 22 projects across the province, including emergency department renovations, upgrades to EMS stations and new dialysis spaces.
- An investment of $237 million over three years towards the Alberta Surgical Initiative Capital Program will help reduce surgical wait times and help Albertans receive the surgeries they need.
- This includes $120 million in new funding for projects in 15 communities across the province to expand and modernize operating rooms in public hospitals.
- Budget 2023 includes $64 million over three years to continue the La Crete Community Health Centre capital project to provide increased access to maternity health services.
- $11 million over three years is part of a $23.5-million commitment to expand the renal dialysis program at the Chinook Regional Hospital in Lethbridge.
- This project will relocate the dialysis unit to provide additional treatment spaces and address patient and staff safety concerns with the current site.
- $3 million over three years in planning dollars is committed to the North Calgary/Airdrie Regional Health Centre.
- $3 million over three years in planning dollars is committed to expanding the Strathcona Community Hospital.
- Planning dollars are also committed for new or upgraded facilities in Bassano, Cardston and Whitecourt.
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
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.
Author:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
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.”
“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.”
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.”
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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