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EDMONTON — Alberta’s government says a new $809-million investment in surgical services will help expand operating room capacity, reduce wait times and modernize how hospitals are funded, but critics argue the plan risks increasing privatization and competition within the health-care system.
The province announced the first phase of its patient-focused funding model is now operating in 12 hospitals, applying to high-volume procedures such as hip and knee replacements, cataract surgeries and select shoulder operations.
Under the model, funding is tied to the number of patients treated and the complexity of care provided rather than traditional block funding allocations.
Premier Danielle Smith said the changes are intended to improve access to care while helping Albertans return to their daily lives more quickly.
“Behind every surgery is a person waiting to get back to their life. By expanding surgical capacity and modernizing how we fund care, we are strengthening our health system so Albertans can access the care they need to return to what matters most,” Smith said.
The funding package includes $525 million over three years through the province’s Acute Care Action Plan and another $284 million through the Alberta Surgical Initiative Capital Program.
The government says the money will support up to 50,000 additional surgeries by expanding operating room availability in public hospitals, increasing the use of chartered surgical facilities for lower-complexity procedures and upgrading surgical infrastructure and equipment.
Health Minister Adriana LaGrange said Alberta is drawing on lessons from other countries that have adopted similar activity-based funding systems.
“Patient-focused funding is about making sure resources follow the patient and the care being delivered. We continue to learn from leading jurisdictions around the world so we can improve access, strengthen the system and deliver better care for Albertans,” LaGrange said.
The province says Alberta completed a record 332,847 surgeries in 2025, including 68,024 procedures performed in chartered surgical facilities. Surgical volumes reached an all-time monthly high of 24,676 procedures in March.
Government officials say future phases of patient-focused funding will be introduced gradually after assessing early results.
Friends of Medicare, however, says the changes move Alberta further toward a privatized health-care model and fail to address problems within the public system.
The advocacy organization describes activity-based funding as a voucher-style approach that encourages competition between facilities for funding.
“Every day, and all over the province, we’re hearing from Albertans that they’re suffering while waiting for access to the often life-saving surgeries they need,” said executive director Chris Gallaway.
“Yet instead of bolstering our public health care system, and our publicly administered, publicly delivered surgical services, the Alberta government is undermining our hospitals by requiring them to compete for funding.”
The group argues the government should focus on increasing capacity within public hospitals rather than expanding the role of chartered surgical facilities.
Friends of Medicare pointed to several previous controversies, including concerns over unused operating room capacity at Edmonton’s Royal Alexandra Hospital, changes affecting surgical hospitalists and last year’s passage of Bill 55, which critics say opens the door to greater private-sector involvement in hospital services.
Gallaway said other solutions proposed by front-line health-care workers have not received sufficient attention.
“Our frontline workforce and other experts continue to call for public solutions such as centralized waitlists that could reduce surgical wait times, but those are consistently being ignored,” he said.
“Instead, Alberta has operating rooms sitting empty and unused every single day because this government would rather pursue convoluted schemes to subsidize private profits, even while their failed privatization strategy has already reduced public capacity.”
The organization also noted provincial data showing only 54 per cent of Alberta’s five most common cancer surgeries were completed within recommended timelines.
The government’s announcement comes as Alberta continues efforts to address growing demand for surgical services driven by population growth and an aging population.
Officials maintain patient-focused funding, increased surgical capacity and infrastructure upgrades will improve access to care while preserving a publicly funded health-care system.
Critics remain unconvinced, arguing the province’s focus should be on strengthening publicly delivered services rather than introducing what they view as market-based reforms.
“This government keeps making major promises that improvements are coming for our health care, but these never seem to transpire,” Gallaway said. “The Premier ran last election on a public health care guarantee, and since then, have spent their time in government laying the groundwork to establish two-tier American style health care in Alberta.”
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