Alberta Partially Rolls Out New Surgery Funding Model for Public Hospitals
The first-year pilot ties hospital funding to procedure volume and complexity, with 26,000 surgeries covered in 2026-27, officials said.
- On Monday, Alberta announced implementation of a "patient-focused funding" model across 12 public hospitals, shifting away from traditional block budgets to pay operators based on procedure volume and type.
- Premier Danielle Smith initiated this shift to modernize health funding and foster competition among providers, backed by more than $800 million committed to expand surgical capacity and renovate operating rooms.
- Acute Care Alberta designated the first year as a "learning year" to track performance, with the model currently funding 26,000 procedures including hip, knee, and cataract replacements at government-set price points.
- Chris Gallaway, executive director of Friends of Medicare, criticized the move, arguing the government is "undermining our hospitals by requiring them to compete for funding" while only 54 per cent of top cancer surgeries meet timelines.
- Future contract discussions with private providers will incorporate this model as Alberta expands capacity, with Acute Care Alberta chief medical officer Dr. Aaron Low confirming the province will monitor 30-day readmission rates to ensure quality.
18 Articles
18 Articles
Alberta Unveils Surgery Funding Model Tied to Work Completed Instead of Budgeted Capacity
Alberta is launching an $809 million “patient-focused” surgery funding model beginning in a dozen public hospitals throughout the province that will see them receive a predetermined price for each surgery performed, rather than relying on a fixed annual budget. “It’s a system that aligns the incentives the right way,” Premier Danielle Smith said at a June 1 press conference in Calgary. “It rewards hospitals for treating more patients instead of …
Red Deer Advocate
Today In BCNew surgery funding model in place at Red Deer hospital
Red Deer’s hospital is one of 12 public, acute care hospitals funded through a new model aimed at increasing the rate of surgeries performed in Alberta. Through patient-focused funding, also known as activity funding, a portion of provincial funding to a hospital is based on the number and type of surgeries performed, and the complexity of patients’ needs. “Funding follows the patient. Hospitals that treat more patients, receive more funding,” s…
Alberta launches new surgery funding model as part of healthcare overhaul
Alberta is launching a new surgery funding model that ties money to patients. In a news conference Monday, the province says it began implementing “patient‑focused funding” in 12 public hospitals last month to change how surgeries are delivered and paid for, aiming to increase efficiency and expand capacity. The move pushes the province away from […]
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