Alberta Begins Health System Reform Despite ‘Disappointment’ With Federal Funding Plan: Smith

Alberta Premier Danielle Smith speaks to members of the media during a press conference in Ottawa on Feb. 7, 2023. Spencer Colby/The Canadian Press

Alberta’s premier says the province has begun reforming its health system despite being disappointed with the $196 billion health fund that the federal government has pledged to the provinces and territories over the next 10 years.

“Obviously, the premiers were somewhat disappointed with the amount of new funding announced for health care,” Danielle Smith told reporters at a press conference on Feb. 9.

“However, Alberta will use its new dollars to accelerate the health reforms that we’ve already commenced here to decrease ER wait times, to decrease ambulance response times, to decrease surgery backlogs, as well as to recruit more front line workers, especially in primary care.”

The proposed $196 billion health funding package, unveiled on Feb. 7, was offered in exchange for the provinces’ commitments to massively upgrade health care data collection and digital medical records. About $46 billion of the offer is new money, including a promise to increase the annual Canada Health Transfer faster over the next decade and targeted funding for priority areas like mental health, surgical backlogs, and family medicine.

However, the premiers—who have been asking Trudeau for another meeting to overhaul the health transfers since 2020—say the health fund will increase the federal share of health care costs to 24 percent next year, which falls far short of the 35 percent the provinces and territories were demanding.

The federal government rejects this assessment, arguing that once various deals with the provinces are included, its share of health funding has already been over 38 percent.

Smith said the Liberals have signalled with their proposal that “they have no intention of increasing that share.” Alberta will likely be allotted about $580 million in new dollars, which she said is still a significant amount.

“I’ve already talked to my health minister about how he wants to deploy those dollars,” Smith said. “We’ve already started on a very ambitious reform strategy, and it will be helpful. So we’re going to be making sure we don’t leave any money on the table.”

‘Just Transition’

Smith’s press conference was held after her meeting with Prime Minister Justin Trudeau in Ottawa on Feb. 7, when the two discussed the future of Alberta’s oil and gas energy sector in relation to the “just transition” legislation.

The premier previously criticized the legislation, saying its name is “a social justice term” that signals the sunset of Alberta’s oil and gas sector.

“I made it very clear that [the Trudeau] government must halt introduction of its proposed just transition legislation, its emissions reduction cap, and its ban on electricity from natural gas, and to immediately come to the table to work collaboratively with Alberta on a joint plan to attract energy investment and workers into Alberta’s conventional, non-conventional, and emerging energy sectors, while simultaneously reducing Canada’s and Alberta’s net emissions,” she said during the press conference.

Smith noted that the prime minister “seemed to express a willingness to explore this collaborative strategy through our respective ministers.”

“I did make it crystal clear to the prime minister during our meeting [as to] Alberta’s expectations for what must and must not be included in any future federal legislation,” she said, adding that future policies must abandon any references to “just transition” or other terminology that signals “the phase-out of Alberta’s conventional or non-conventional energy sector or workforce.”

Smith said Trudeau has “not yet shown himself to be a friend of Alberta,” pointing to federal policies imposed under his government that have been “exceptionally harmful to our economy and to our investment climate.”

“I’m opening the door, but I also have to be pretty clear: if the prime minister chooses to slam this door in our face and moves unilaterally forward with just transition or other impossible and arbitrary emissions targets or policies without Alberta’s involvement and agreement, Alberta will be relentless in our opposition, and we will use every tool at our disposal to protect Albertans, their jobs, and their future,” she said.

“The ball is now in the prime minister’s court, and I hope his response to my offer is the right one.”

The Canadian Press contributed to this report.