Alberta
Mandel wins court challenge and calls for expansion of Red Deer Hospital

March 04, 2019 -Edmonton- Alberta Party leader, Stephen Mandel, promised an Alberta Party government will bring in new standards to protect taxpayers and provide more open democracy for Albertans. The announcement was made after a Court of Queen’s Bench victory restored the leader’s right to run in the upcoming election to represent Albertans in Edmonton-McClung.
Alberta Party Leader, Stephen Mandel, is energized by the decision.
“This vindictive legislation has created a huge mess and needlessly tied up the court system. Candidates were forced to fight overreaching legislation and unreasonable penalties in court while the Notley government slashed funding for opposition parties and used AHS facilities to campaign at the taxpayer’s expense. An Alberta Party government will bring in new Standards to Protect Democracy, to stop politicians from weaponizing the government for political purposes.”
Mandel joins 5 other Alberta Party candidates, who were also victorious in court.
In what appears to have been a busy day for the party, Mandel also says that his government would green light a much needed expansion to the Red Deer Regional Hospital Centre. It means more beds and services available in central Alberta so families don’t have to travel long distances to get care.
“The Alberta Party recognizes the Red Deer Regional Hospital has fallen behind in development and expansion. The failure over two decades to sufficiently invest in this critical facility has hampered its ability to function as a main referral hospital. The approximately 450,000 Albertans living in the Central Zone deserve to receive their health care closer to home.”
The Alberta Party is pleased the recent Interventional Cardiac Services Needs assessment has determined that cardiac catheterization is deliverable in Red Deer. This assessment supports the Alberta Party’s position on developing enhanced services in central Alberta. However, there is still work to be done.
“The current government still has not publicly released the Updated Needs Assessment study on the Red Deer Regional Hospital, a study which was completed months ago. I call on the Minister to immediately release this report publicly in order to allow all parties to develop plans for this important project.”
Alberta
Alberta takes big step towards shorter wait times and higher quality health care

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

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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