Alberta
Province adding 50 permanent ICU beds to bring Alberta’s total to 223
Expanded health capacity to move Alberta forward
Albertans will have more access to critical care beds thanks to a $300-million investment over three years to expand health-care capacity.
Alberta’s government is adding up to 50 permanent, fully staffed intensive care unit (ICU) beds this year alone thanks to a $100-million investment in Budget 2022, an almost 30 per cent increase over current capacity. These beds will expand Alberta’s health-care capacity in order to prevent the system from becoming overwhelmed, a major concern during previous waves of the COVID-19 pandemic.
“One of my top priorities as Minister of Health is to build capacity in Alberta’s health system. While AHS was able to add surge capacity when needed during the pandemic, this is not a sustainable or prudent way to plan for the future. Adding up to 50 ICU beds this year alone, plus other ongoing efforts, will give Albertans better access to the health care they need.”
The new ICU beds will be distributed in all AHS zones across the province, with location details currently being developed. AHS will provide the government with a plan on where the beds are needed and how they will become fully operational.
“Throughout the COVID-19 pandemic, AHS has been able to quickly increase hospital and ICU capacity to meet demand. This is a testament to our incredible health-care workers and a system that is nimble, fluid, and able to evolve to meet the challenge of an ever-changing virus. These additional beds and staffing resources will help us continue to provide the excellent and timely care that all Albertans deserve.”
“Our province needs to have the flexibility to meet our current and future health-care needs and respond to whatever challenges we face. It’s great to hear that my constituents may be able to receive more of their care at home, with Lethbridge as the focus for any new ICU beds added in southern Alberta.”
A Sustainability and Resiliency Action Plan, created to ensure the health system can respond quickly and proactively to future waves of the pandemic or other health emergencies, recommends 21 capacity building actions, with surgical recovery and ICU and acute care baseline capacity the immediate priorities. The plan incorporates leading practice and lessons learned from other Canadian and international health systems.
AHS will now formalize a new baseline ICU bed capacity plan that includes detailed reporting mechanisms, appropriate workforce planning, ramp-up strategies and redeployment plans so front-line staff are able to support other parts of the health system when ICUs are not facing pressures.
A surgical recovery plan that builds on the Alberta Surgical Initiative will be announced soon.
Quick facts
- Prior to COVID-19, Alberta maintained 173 adult general ICU beds in hospitals across the province.
- The new ICU beds are expected to come on stream in the coming months.
- EY was contracted to review details of how Alberta’s health system responded to capacity issues during the pandemic, and to compare the practices and lessons learned from other health systems across Canada and around the world. The subsequent Sustainability and Resiliency Action Plan includes recommendations to ensure the health system has the appropriate capacity to respond to potential future waves of COVID-19 and other health situations.
- The 21 recommended actions in the plan have been developed across six workstreams: workforce; acute, critical care and surgery; primary and community care; governance and decision-making; public health; modelling.
- A comprehensive review of Alberta’s pandemic response is planned.
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:
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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