Overview
Alberta’s government is refocusing the health care system to improve access to care and to ensure investments in health care are managed more efficiently.
As part of this work, Alberta is introducing patient‑focused funding for select procedures.
This approach is part of a broader strategy to improve access to care, including:
- increasing surgical volumes through the Acute Care Action Plan
- expanding and modernizing operating room capacity in hospitals
- strengthening how surgeries and other services are funded
Together, these actions support shorter wait times and better access to care for Albertans.
Watch Premier Danielle Smith on patient-focused funding
About patient-focused funding
Patient‑focused funding, also known as activity‑based funding, pays hospitals based on the number and type of patients they treat, and the complexity of their care.
This approach:
- aligns funding with the care patients receive
- increases transparency and accountability
- supports efficient delivery of services
Funding follows the patient, rather than relying only on fixed global budgets. Hospitals that treat more patients receive more funding, creating an incentive to increase volumes where capacity exists.
Patient‑focused funding complements existing funding approaches and is being introduced in phases, starting with a small number of common, high‑volume planned surgeries.
How the model is being introduced
Patient‑focused funding has been introduced in many jurisdictions across Canada and internationally using a phased approach.
In countries such as the United Kingdom, Germany, Australia and Norway, funding reforms were introduced over several years, with each phase assessed before expanding further. This staged approach allowed health systems to adapt, ensuring stability while improving access, transparency and efficiency.
In Alberta, patient‑focused funding is being introduced in a measured, phased way. This allows early results to be assessed, and the approach refined over time. Future phases will be introduced following evaluation, supporting a stable transition to a model that works for patients and the health system.
Improving our health care system
Alberta is taking a coordinated approach to improving access to care by strengthening both system capacity and how care is funded.
Patient‑focused funding is supported by systems such as Connect Care, which collects clinical data on all procedures in our hospitals so information flows between health care providers and patients throughout their care journey.
Patient-focused funding enables a clearer line of sight for us to ensure that the right care is delivered at the right time, and in the right place, as multiple organizations provide health care services across the province.
Implementation
Patient‑focused funding is being implemented in phases, with ongoing monitoring and evaluation.
Phase one is focused on a small number of common, high-volume planned surgeries at select hospitals, based on readiness, surgical volume and capacity. Funding is adjusted to reflect patient complexity, supporting quality and safety.
Phase one began on April 1, 2026, at 12 sites operated by Alberta Health Services and Covenant Health:
- Chinook Regional Hospital
- Grande Prairie Regional Hospital
- Grey Nuns Community Hospital
- Innisfail Health Centre
- Medicine Hat Regional Hospital
- Misericordia Community Hospital
- Red Deer Regional Hospital Centre
- Rockyview General Hospital
- Royal Alexandra Hospital
- St. Mary’s Hospital
- Westlock Health Care Centre
- Wetaskiwin Hospital and Care Centre
Approximately 25,760 surgeries will be funded through patient-focused funding in phase one, including:
- 4,710 hip replacements
- 7,240 knee replacements
- 13,190 cataract surgeries
- 620 shoulder repairs
Future phases will be informed by evaluation and may expand to additional procedures and sites. This includes:
- assessing expansion to additional procedures
- ensuring the model works for all sites, including rural and regional sites
- supporting required data, reporting and oversight