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Alberta

Province trumpets $105 million in new health spending for Rural Health Facilities Revitalization Program

Published

2 years ago

7 minute read

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.”

Jason Copping, Minister of Health

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.”

Dr. Cheyanne Vetter, facility medical director, Wainwright Health Centre

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.”

 Garth Rowswell, MLA for Vermilion-Lloydminster-Wainwright

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.

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This is a news release from the Government of Alberta.

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Alberta

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

Published on April 9, 2025

By

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

Published on April 9, 2025

By

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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