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Negotiation update
The government and Alberta Medical Association have reached a tentative agreement for physicians. AMA will take steps toward ratification. Information on this page will be further updated upon ratification.
Read the joint statement (Feb. 26, 2021)
Overview
(Information below is from March 31, 2020. Content to be updated upon ratification.)
Alberta will maintain government’s current level of spending on physicians at $5.4 billion, and implement a new funding framework to avoid about $1 billion in cost overruns by 2022-23.
The new physician funding framework was introduced March 31, 2020. It's a multi-year process that will require consultation with the Alberta Medical Association (AMA) at all stages. It will include:
- implementing changes proposed during negotiations to prevent cost overruns
- aligning benefit programs and administrative fees with those of comparable provinces
- improving services for patients
Changes will also include government’s 11 Consultation Proposals based on appropriate patient care and use of insured services budget. The AMA, physicians, and other providers were consulted on these proposals. They were also brought to the AMA negotiations table. Eight of the proposals are currently moving forward.
New funding framework
A new funding framework will address growing costs so government can address important frontline health care priorities like reducing surgical wait times, improving mental health and addiction services, and expanding the number of continuing care beds.
This section will be updated following ratification of the Feb. 26, 2021 tentative agreement.
Physician costs
Physician services account for 10% of total government spending. Without any changes, the old model would have cost taxpayers about $1 billion by 2022-23.
Spending growth on physicians is not sustainable and provides no better health results for Albertans. The MacKinnon Report found that:
- payments to Alberta physicians are significantly higher than comparable provinces like Ontario, BC and Quebec
- more Alberta physicians are paid through a high cost fee-for-service model than other provinces
- Alberta spends nearly 25% more per capita on physician services than comparable provinces
- physicians’ fees have almost tripled since 2002
Physician payment disclosure
Albertans deserve to know how their taxpayer dollars are spent.
Physician payments will be disclosed to the public to increase transparency and accountability in the health system.
Physicians who believe disclosure will unduly threaten their safety had until October 7, 2020 to apply for an exemption.
11 consultation proposals
The Government of Alberta made 11 consultation proposals to the AMA to enable Albertans to realize better health outcomes and build a stronger and more sustainable health system, while managing physicians spending growth. The 11 consultation proposals will not change how doctors practice medicine. Eight of the proposals are currently moving forward.
- Complex modifiers
On March 17, 2020, the Government of Alberta announced changes for complex modifiers will not go ahead as planned on March 31. Read the news release.
- Comprehensive annual care plans
This redundant billing code will be removed as physicians can bill for a comprehensive annual visit to provide patients advice on how to manage complex conditions.
- Driver medical exam for patients 74.5 or older
Having these drivers pay for their medical exam is consistent with other patients and will align with coverage in other provinces.
- Diagnostic imaging referrals
Only practitioners providing publicly funded services through the Alberta Health Care Insurance Plan will be able to refer for diagnostic imaging services, which is consistent with the approach taken by some other provinces. There is no change to the scope of practice of practitioners.
- Diagnostic image billing appropriateness
Streamlining physician fee codes for areas like diagnostic imaging will ensure services are billed the same way.
- Implement daily office volume caps
Government is capping the number of daily billable "visit services" codes to enable physicians to practice within reasonable patient loads.
- Overhead
Ensures physicians are not billing overhead costs such as equipment, supplies, leases and technical staff for work delivered in an AHS facility, as these costs are already covered by the public health facility. On April 24, 2020 the government announced rural physicians will be exempted from this overhead policy. In addition, overhead changes will be delayed for urban physicians until a policy review is conducted.
- Clinical stipends provided by AHS
The practice of payment top-ups is a carry-over from when Alberta had several regional health authorities and is no longer appropriate as physicians are already compensated under the Alberta Health Care Insurance Plan. Note: In light of COVID-19, AHS has been given more time to prepare an implementation plan for recommendations coming out of the AHS review, including the clinical stipends it provides to physicians. Clinical stipends will continue until a final implementation plan decision is made.
- Submission of claims within 90 days
Giving practitioners 90 days to submit their payment claims, instead of 180, will improve budget forecasting, policy and planning decisions, an earlier publication of the Statistical Supplement and the inclusion of AHCIP benefits on the Statement of Benefits Paid – a product used by patients.
- Non-invasive diagnostic test fees in AHS facilities
Directing AHS to standardize the fees paid for non-invasive diagnostic procedures will ensure consistent compensation between hospital and non-hospital physicians.
- Stop accepting non-emergency good-faith claims
Ending the practice of submitting claims for services provided to patients who cannot provide proof of AHCIP coverage or Alberta residency will reduce the number of unpaid billing claims and ensure services are provided to eligible residents. Four other provinces do not provide good faith claims.
Benefit program changes
1. Continuing Medical Education Program
- Effective March 31, 2020, this program was eliminated. This program currently reimburses eligible physicians for costs incurred for the maintenance and enhancement of knowledge, skills, and competency. This brings Alberta in line with Ontario.
2. Medical Liability Reimbursement Program
- This program reimburses eligible physicians for costs incurred for medical liability insurance premiums set by the Canadian Medical Protection Association.
- On April 24, 2020, the government announced the Medical Liability Reimbursement Program deductible for all rural physicians, as well as all family medicine practitioners in Alberta, would remain at current rates. Alberta Health is also assuming responsibility for administering the program from the Alberta Medical Association.
View: Health Professional Bulletin Med 227 (PDF, 531 KB)
3. Business Costs Program
- The Government of Alberta will not be proceeding with changes to this program, due to the disproportionate impact on family medicine physicians.
4. Rural Remote Northern Program (RRNP)
- On April 24, 2020, the government announced the $60,000 cap that eligible rural physicians can claim through the RRNP will be removed. With the change, Alberta will now have one of the best incentive programs for rural physicians in Canada.
Other compensation options
The Fee-For-Service model isn’t right for everyone. Clinical Alternative Relationship Plans (ARP) enable physicians to spend more time with patients and address complex needs, without worrying about their compensation being tied to delivering specific services.
Alberta Health is streamlining the process for creating an ARP:
- Once we receive an acceptable application, a Clinical ARP can be implemented within 6 weeks.
- The Expression of Interest and application forms will be updated to reduce the amount of information required. The updated forms concentrate on service delivery and how a Clinical ARP will improve patient care.
- A dedicated phone number and email has been set up to make it easier to inquire about Clinical ARPs
- Phone: 780-643-1436
- Email: [email protected]
Timeline
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September 2019
- Government provided notice to the AMA that it intended to begin negotiations on the AMA Agreement. The notification provided time for the AMA to prepare its proposals.
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November 2019
- Negotiations began with the AMA to reach a new agreement and government began consultations on 11 proposed changes primarily related to the schedule of medical benefits (SOMB, or “insured services”).
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January 2020
- Negotiations and consultations proceeded with no agreement reached.
- Mediation, on both the negotiation and consultation proposals, began January 31 and continued into February.
- The parties were not able to reach an agreement during mediation.
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February 2020
- Government announced it will implement its final offer from the negotiating table, including the 11 consultation proposals, and some changes to benefit programs.
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March 31, 2020
- The new Physician Funding Framework came into effect March 31, 2020.
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April 24, 2020
- Supports for rural physicians announced.
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July 9, 2020
- Government files Statement of Defence (PDF, 274 KB)
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September 16, 2020
- The Physician Payment Disclosure policy and exemption process was released.
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February 26, 2021
- Tentative agreement reached.
- AMA takes steps toward ratification.
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News
- Government files defence (July 9, 2020)
- Protecting access to rural health care (April 24, 2020)
- New physician funding framework announced (February 20, 2020)
- Physician negotiations: Statement from Minister Shandro (Feb. 14, 2020)
- Mediator appointed for AMA negotiations: Joint statement (Jan. 31, 2020)
- Alberta Health Services Review: Minister Shandro (Aug. 8, 2019)
- Contractor selected to conduct AHS review (July 18, 2019)
- AHS Review to find savings, improve performance (May 30, 2019)