In a move to revitalize Alberta’s healthcare system, Premier Danielle Smith has announced a comprehensive restructuring plan that will see Alberta Health Services relinquish control of certain provincial hospitals. 

Smith made the announcement during a town hall meeting with constituents in Drayton Valley on Aug. 17. 

Smith’s strategy details

The strategy aims to transfer administrative duties to alternative operators, such as Covenant Health, a Catholic healthcare organization with a track record of maintaining rural hospital operations. 

The Alberta government will maintain ownership of the hospital facilities, yet it is exploring leasing options to other operators, particularly in rural locales where healthcare services are frequently interrupted.

Premier Smith’s initiative is driven by her reform plan to enhance healthcare delivery through the introduction of more competition and performance incentives, which are anticipated to serve as catalysts for improved services from AHS and other healthcare providers. 

Smith’s strategy will incentivize performance

“(We are) prepared to also take away their authority to operate hospitals as well,” said Smith. “Because if our operator isn’t performing the services we need them to, we’re going to take (control) back.”

“That is going to be a very powerful competitive incentive for the managers to say, ‘Oh my goodness, if we continue to deliver terrible care in Drayton Valley, then somebody else is going to be chosen for the operator’,” Smith continued. 

Smith says she’s actively seeking the consent of Albertans before proceeding with the proposed restructuring.

Covenant Health has already begun to assume operational responsibilities in certain regions, such as La Crete.

Demonopolizing the power of AHS

“The next phase is to see how many of those hospitals that AHS currently operates that we can retake ownership over. We can’t do it for all of them,” said Smith. 

“When you’re dealing with a monopoly, and they believe that they can deliver any type of care, and there are no consequences, they’re going to continue to deliver bad service. And competition is one option. That’s why we’re offering chartered surgical centres and why we’re offering Covenant.”

This transition represents a significant pivot in Alberta’s healthcare approach, steering towards a decentralized model and the engagement of specialized organizations. 

Putting patient care first

Premier Smith advocates that this shift will cultivate a more responsive and patient-centric healthcare system.

Alberta’s healthcare landscape is currently fraught with challenges, protracted emergency room wait times, overcapacity and a dwindling number of physicians willing to take on new patients, which compounds the overall pressure on the system. 

In response to these issues, Alberta Health acknowledged the imperative for enhanced outcomes from AHS and reaffirmed the government’s dedication to sustaining vital health partnerships. 

“We’ve raised these concerns with AHS and have asked them to develop strategies to address them. We want to support and empower our incredible frontline healthcare workers to continue providing excellent care to Albertans when and where they need it,” said Alberta Health in a statement.

“The work to refocus Alberta’s health care system includes transitioning Alberta Health Services, over time, to focus on delivering only acute care services. AHS and Covenant Health will continue to play key roles in health care service delivery, providing acute care to Albertans.”