Element 5: Financial


The AMA Agreement provides specific financial provisions for the initial financial term of the arrangement. The following “agreed increases” will be applied to the SOMB and ARPs, and as well as to all Physician Support Programs and Physician Assistance Programs (see Element 3: Scope and purpose):

  • 2011–12: 0%.
  • 2012–13: 0%.
  • 2013–14: 0%.
  • 2014–15: 2.5%.
  • 2015–16: 2.5%.
  • 2016–17: Cost of living adjustment (COLA).
  • 2017–18: COLA.

These increases are effective April 1 of each fiscal year:

  • Increases will be allocated according to a process managed by the Physician Compensation Committee (PCC) (see Element 9: Physician Compensation Committee).
  • COLA is derived from the previous calendar year’s increase in the Alberta All Items Consumer Price Index.
  • Any additional costs above these rates that arise from utilization will be the responsibility of AH (e.g., increased population in Alberta and other factors that physicians do not control).

In addition to the above, the AMA Agreement provides for AH to make a payment of $68 million to be distributed to physicians by the AMA after consulting with AH. Best efforts will be made to distribute within 90 days of ratification of the AMA Agreement.

You might ask

Q5.1 What happens if utilization exceeds the rate increase applied in a given year? Will my fees be clawed back?

  • No. Utilization increases, which are the responsibility of AH, are on top of any rate/price increase in a given year. There will be no claw back of fees arising from utilization.

Q5.2 Is my compensation guaranteed to increase by the same rate increase applied for each year, e.g., 2.5% in a year where 2.5% applies?

  • Rate increases will be determined through the allocation process identified by the PCC. The allocation will determine how increases impact each physician.

AMA Agreement document reference

  • Page 5, Section 5(b)-(e).

Download the PDF of Element 5: Financial

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