Thumbs Up for Patient-Focused Funding in Alberta

SecondStreet.org is applauding the Alberta government for committing to introducing patient-focused funding, a major health reform step that will bring the province more in line with better-performing universal health care systems in Europe and Australia.
This model of funding has been recommended by SecondStreet.org for years, and has been used to great effect in Sweden, France, Australia, and elsewhere. In short, through this model, hospitals and clinics are paid based on their output ‒ when they provide care for a patient, they receive more money. This is different from the block funding model, also known as global budgeting, currently used throughout most of Canada, where hospitals are given a set amount of money and then asked to do their best.
“What the Alberta government is doing is copying a policy that is widely used in better-performing universal systems in Europe,” said SecondStreet.org President Colin Craig. “The policy change has great potential to help reduce wait times for patients. In fact, Quebec has been trying out patient-based funding for years and they’ve had great success with it.”
In her video, Premier Smith pointed to how patient-focused funding (also known as activity-based funding) has helped Australia significantly reduce wait times. At a 2024 conference co-hosted by SecondStreet.org, Australian health care expert Terry Barnes backed up that data.
“Activity-based pricing encourages efficiency, as well as increasing throughput in minimizing both waiting times and inpatient stays, and focuses the minds of hospital administrators as well as clinicians,” Barnes said.
“This is great news for Alberta, but there’s plenty of work ahead,” Craig added. “While activity-based funding will help cut wait times, there are still several major reforms Alberta and the rest of the country could adopt to bring our system more in line with better-performing universal health systems in Europe and Australia.”
To learn more about activity-based funding ‒ click here.
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