Alberta partially rolls out new surgery funding model for public hospitals

Alberta Premier Danielle Smith, right, and Hospitals Minister Adriana LaGrange enter to speak at a news conference in Calgary on Wednesday, Feb. 19, 2025. THE CANADIAN PRESS/Jeff McIntosh

Alberta is rolling out a new surgery funding model that ties money to patients, starting in a dozen public hospitals across the province.

The government calls it patient-focused funding and says it began last month for the initial group of hospitals.

Hospital operators are being funded based on the number and type of procedures they perform, rather than blanket budgets for surgeries.

There’s a government-set price for each type of surgery, and the province says some have been set below historical averages to encourage efficiency.

When Premier Danielle Smith announced the change last year, she said it would drive costs down by fostering competition among public and private surgical providers.

The initial trial started last month and is limited to public hospitals, but government officials say the model will be used in future contract discussions with private providers.

Acute Care Alberta, the government organization that oversees hospitals, says there will be a “learning year,” as it tracks how the new system works.

It says it will monitor readmission rates and other measures to make sure the quality of care doesn’t decline.

The funding model applies to knee, hip, and cataract replacements and arthroscopic rotator cuff repairs, but the government said it could expand to include additional procedures.

This report by The Canadian Press was first published June 1, 2026.

The Canadian Press