Alberta shifts surgery funding to payment-per-procedure model
The province is moving away from block funding to tie hospital payments directly to surgical volume in a bid to boost efficiency and cut wait times.
Alberta has launched a new funding model that pays hospitals based on the number and type of procedures they perform, marking a significant shift away from traditional block funding that previously allocated money in fixed chunks.
The province began implementing "patient-focused funding" in 12 public hospitals last month. Under the new system, hospital operators receive a set price for each surgery, with some rates positioned below historical averages to encourage efficiency. The model applies initially to knee and hip replacements, cataract surgeries, and arthroscopic rotator cuff repairs, with additional procedures potentially added over time.
Acute Care Alberta has designated this first year as a "learning year" to track performance metrics including readmission rates and other quality measures to ensure care standards don't decline. The government says the approach will eventually apply to private surgical providers as well.
The shift comes as Alberta commits more than $800 million to expanding surgical capacity. Budget 2026 includes $525 million over three years to support up to 50,000 additional surgeries and $284 million to renovate operating rooms and upgrade equipment across public hospitals. Alberta performed a record 332,847 surgeries in 2025, with monthly volumes peaking in March 2026. Officials say the new investments will free up hospital operating rooms for more complex cases by routing simpler procedures to chartered surgical centres.