Dear Members,
Today, government announced a $172.3 million investment in physician compensation as part of the final year of the current Master Agreement (2022-26). This represents the arbitrator’s award of a 3% increase, retroactive to April 1, 2025.
Consistent with the terms of the agreement, the distribution was developed jointly by the AMA and government working together to address compensation priorities. While we fought for, and certainly would have preferred, a larger overall increase from the arbitrator to address physician priorities, our focus throughout this process was clear: to make the most of every available dollar and ensure as much funding as possible flows directly to physicians in support of your practices.
Through detailed work with government, we challenged assumptions, improved costing approaches and strengthened how funding is allocated. This allowed us to direct more of the available investment toward physician compensation priorities. In addition to modernized rates for Alternative Relationship Plans (and clinical Academic Medicine and Health Services Program rates), we also secured important gains, including allowing the after-hours time premium 03.01AA code to be billed by ARP/AMHSP specialists — a key priority consistently raised by members (note: eligible family medicine ARPs were changed last year to allow for separate billing of 03.01AA). Base ARP rate increases will be implemented effective April 1, 2025, with retroactive adjustments expected soon. Billing of 03.01AA by specialist ARP/AMHSP physicians will be implemented on a ‘go forward’ basis, with go-live anticipated for October 1, 2026.
The Year 4 allocation, representing 3% of total physician payments, has been structured in a deliberate and balanced way to support both physicians and the health system. The allocation includes three core components:
- Approximately one-half of the total funding is directed toward modernizing ARP/AMHSP clinical compensation rates following the new Derived Day Approach (DDA). This will help bring greater alignment, stability and sustainability to these models, while supporting a transition away from legacy stipends. For more information about clinical ARPs, including an information session being held this evening at 6 p.m., please visit Clinical ARP Resources.
- A large share of the funding is distributed through a preferential allocation informed by the Income Equity Measure. This approach is aligned with Representative Forum direction and the AMA’s Physician Compensation Strategy and helps address disparities among sections by directing proportionally higher increases to areas where gaps exist.
- Targeted investments are being made in specific areas to reflect current system pressures, including increases to key after-hours services such as 03.01AA, and ongoing schedule maintenance to better support day-to-day practice realities.
The overall distribution reflects a careful balance between advancing income equity and maintaining system stability. Some sections will see higher proportional gains than others based on the Income Equity Measure. This reflects the goal of addressing long-standing inequities across the profession, including many cARP rates that have fallen 10–70% behind comparable FFS payments.
View Year 4 Allocation: Fee-For-Service Percentage Increases and Updated ARP Hourly Rates by Section (retroactive to April 1, 2025) (member login required).
It is also important to acknowledge that government was more directly involved in this year’s macro allocation than in the past, including bringing forward specific priorities. Throughout the process, the AMA remained focused on advocating for physicians and ensuring the final allocation reflects both member interests and the realities of the health system.
In the coming weeks, we will work closely with sections to finalize micro (fee-level) changes and complete implementation of ARP rate adjustments. This phase is important to ensure that the allocation is accurately reflected in the Schedule of Medical Benefits and ARP/AMHSP rates.
Through ongoing negotiations and advocacy efforts, the AMA continues to seek further improvements to address the pressures physicians face. This allocation represents an important step toward advancing that modernization work, but there is more to do. The progress made in aligning compensation models, addressing inequities and reinforcing the value physicians bring to the system strengthens our position as we negotiate a new master agreement.
We know that appropriate financial compensation for the high-value care physicians provide is critical to our members. This remains a top priority for the AMA. At the same time, we also know that physicians need the right environments and supports to do their work effectively, including team-based care, system-level supports, alternate service delivery structures, intra-sectional fee rebalancing (to advance high-value care and reduce drivers of low-value care), and looking at novel ways of enhancing patient care. We are health care leaders with expertise and a keen interest in health system reform that works for all Albertans, and the AMA will continue to work tirelessly to advocate for a system that is there for Albertans when they need us the most.
Regards,
Brian Wirzba, MD, FRCPC
President, Alberta Medical Association