Investment in key health priorities
The AMA welcomes increased funding for primary care, mental health, addictions and continuing care, which are essential as Alberta’s population grows and care needs become more complex. Increased support for First Nations, Métis and Inuit health, as well as rural health care training and recruitment, is also a positive step.
Surgical and urgent care funding without clear impact on wait times
Investments in urgent care centers and chartered surgical facilities are encouraging, but the lack of data on whether this will reduce wait times, including for cancer treatments, is concerning. While investments in training, recruitment and retention are welcome, targeted workforce planning is needed to ensure Albertans receive timely care.
Physician Compensation Budget falls short
The 2025/26 Physician Compensation and Development Budget does not reflect the increasing demands on Alberta’s health care system. It also does not keep pace with the government’s own population growth and inflation estimates:
- The budget is $600M short of what is needed to meet patient care demands.
- The budgeted amount ($6.99B) is actually $29M less than last year’s actual projected expenditures ($7.01B) – despite increased demand.
Based on government data, the AMA projects an actual need of $7.60B this year:
- Projected Primary Care Physician Compensation Model costs ($178M)
- Population growth (2.5%) ($175M)
- Patient complexity (0.6%) ($43M)
- Inflation (2.6%) ($188M)
It is unclear how government plans to fill this gap in health care funding. AMA is concerned that government may attempt to use the Market Rate Review (MRR) process – agreed to by AMA and Alberta Health in the AMA Agreement – to address the shortfall. The MRR was meant to adjust specific physician fee codes based on market comparisons with Ontario, Manitoba, Saskatchewan and British Columbia – not to offset a $614M funding gap in physician compensation.
Lack of funding for acute care stabilization
The budget is silent on the AMA’s Acute Care Stabilization proposal, which estimates that $308M is needed to recruit and retain acute care physicians and stabilize services for Albertans. Without this investment, access to acute care continues to be at risk.
Lack of funding for health system integration
A modern, efficient health care system requires integration of clinical, administrative and technology systems. While some work is underway via the Integration Council, the council lacks experienced leaders who can actually operationalize integration. There is also no funding allocated for a shared services entity that will be needed to achieve more advanced integration than what was previously available through Alberta Health Services (AHS).
Health property transfers – more clarity needed
More detail is required on the legislative changes that permit publicly owned health properties and assets to be transferred to Alberta Infrastructure on April 1, 2025, and then “leased back to health entities to operate and maintain.” What will this mean for AHS and Covenant Health? We need clarity on what costs physicians will face for capital assets and overhead, and how this compares across sectors and jurisdictions. More information is needed on the $3.8 billion that has been allocated for capital, maintenance and equipment.
Concerns over private health care expansion
The AMA is concerned about government’s increased reliance on private for-profit health care providers without a clear plan in place to prioritize the public system and reduce unintended consequences. Risks include:
- Fewer staff (including specialists like anesthesiologists and surgeons) in public hospitals as private for-profit clinics aggressively recruit professionals that are in limited supply.
- Less value for taxpayer money—private companies keep any cost savings as profit instead of reinvesting in the public health care system.
- Unequal access to care—chartered care entities must be distributed equitably so that rural patients do not experience long wait times or extra travel.
Appropriate and safe health care staffing levels will be needed to ensure quality care is provided to patients in new continuing care and mental health and addiction/recovery facilities.
To get the best value for taxpayer dollars, government must ensure that contracts with private for-profit providers are transparent and have built-in accountability, cost control and quality assurance.
A balanced public-private health care system is possible, but only with proper financial and workforce planning to ensure Albertans receive the care they need.