Alberta looking to save $400M in doctor payments, medical association president says in memo
The Alberta government is facing pressure to cut more than $400 million in fees paid to doctors, according to a confidential memo obtained by The Canadian Press. The memo, sent by Alberta Medical Association head Dr. Shelley Duggan to member physicians on Feb. 18, reveals that Alberta’s health ministry is seeking cuts to over 800 physician billing codes in order to save $400 million due to budget constraints.
These billing codes outline the amount of money paid for specific medical procedures, often based on the time spent by a doctor with a patient. Dr. Duggan expressed concern in the memo, stating that Alberta Health is looking to address its budget shortfalls through cuts to physician services. She also mentioned that the government’s move breaks an agreement to jointly review the billing changes, as there is not enough time for a proper evaluation before the March 31 deadline.
If an agreement cannot be reached by the deadline, the next steps would involve mediation and potentially binding arbitration later in the spring. The Alberta Medical Association, or AMA, declined to comment on the memo, citing confidentiality requirements of their 2022 master agreement with the province.
Health Minister Adriana LaGrange’s office released a statement reaffirming their commitment to the agreed-upon joint review process. They emphasized that government spending on physicians has been increasing, with a $1 billion rise since 2022-23. The statement also highlighted that the government is on track to spend more than the budgeted $6.7 billion on physician compensation for Alberta’s approximately 12,000 physicians.
Alberta NDP Opposition health critic Sarah Hoffman criticized the proposed billing cuts, suggesting that they are part of a larger government plan to undermine public health care and promote privatized services. She expressed concerns raised by doctors regarding the future of their practices and public health care in general, noting a growing sense of mistrust and anxiety among healthcare professionals.
The ongoing dispute occurs amidst financial challenges, controversy, and structural changes in the healthcare system. Premier Danielle Smith’s government has projected a $5.2 billion deficit for the upcoming year, citing uncertainties over U.S. tariffs and anticipated declines in oil revenue. The AMA has criticized the budget for underfunding physician compensation and development by approximately $600 million.
As the health system undergoes fundamental restructuring, the AMA has emphasized the importance of adequately funding physician compensation and development without resorting to changes in billing codes. The future of public health care in Alberta remains uncertain as stakeholders navigate these complex financial and structural challenges.
