Health funding allocations for 2014–2015

Funding the health system

  • Funding for Alberta Health is budgeted at $18.3 billion, an increase of over $600 million or 3.6% from 2013/2014 (excluding flood recovery initiatives).
  • Every hour we will spend $2.1 million – over $50 million per day – to maintain and improve Alberta’s health care system.
  • Total Health spending will account for 45% of Alberta government operational spending in 2014/2015.
  • Health care allocations are contained in the provincial government budget which is approved each year by the Alberta Legislature.

Alberta Health Services

  • Alberta Health Services (AHS) will receive $10.7 billion in base operating funding – an increase of $210 million or 2% from 2013/2014 for the delivery of health services across the province.
  • Approximately 59% of the Health budget will be provided to AHS as base operating funding. 
  • In addition, AHS will receive $393 million in 2014/2015 to support operations care capacity at the South Health Campus in Calgary, the Kaye Edmonton Clinic and the Strathcona Community Hospital.

Physician compensation and development

  • $4 billion – an increase of $272 million or 7.4% from 2013/2014 has been allocated for physician compensation and benefit programs.

Drugs and supplemental health benefits

  • $1.5 billion – a decrease of $90 million, or 5.7% from 2013/2014 has been allocated for prescription drugs, ambulance services, Alberta Aids to Daily Living and other health benefits for Albertans. Also included are outpatient cancer therapy drugs and specialized high cost drugs.
  • This budget reflects the ongoing savings from the reduction in generic drug pricing implemented in 2013/2014. The plan is also to refresh government sponsored drug and health benefit programs to improve health and social outcomes.
  • An annual spending increase of over $360 million in the department is due to the transfer of health benefit programs from the Ministry of Human Services related to Assured Income for the Severely Handicapped and income support clients through the Child Health Benefit and the Adult Health Benefit.

Primary health care, addictions and mental health

  • $326 million – an increase of $94 million, or 40.3% from 2013/2014 for Primary Health Care, and Addictions and Mental Health.
  • Additional funding for Addictions and Mental Health initiatives in 2014/2015 will support the Community Treatment Order program, implement child and youth mental health supports, and develop child and adolescent mental health inpatient beds.

Alberta Seniors Benefit and other seniors services

  • $395 million – an increase of $21 million, or 5.7% from 2013/2014 has been allocated for seniors services including benefit programs such as the Alberta Seniors Benefit and Special Needs Assistance for eligible low income seniors.

Community programs and other health services

  • $805 million – an increase of $90 million, or 12.6% from 2013/2014 has been allocated for several programs including Enhanced Home Care and Rehabilitation, services provided by health professionals (such as oral surgeons, optometrists and podiatrists), vaccination programs, human tissue and blood services and health services provided in correctional facilities.

Endowments

  • Two endowments totaling $111 million in 2014/2015 supports research and innovation activities to improve the health and wellbeing of Albertans. Specifically, $86 million has been allocated to Alberta Innovates Health Solutions, an innovation enterprise that directs, coordinates, reviews, funds and supports health research. Another $25 million from the Alberta Cancer Prevention Legacy Fund supports various cancer research and prevention initiatives.

Ministry Support Services

  • $78 million – an increase of $5 million, or 7.4% from 2013/2014 for Ministry Support Services.

2013 Alberta flooding

  • Funding was announced in 2013 to support Albertans with recovery supports as a result of June 2013 flooding in Southern Alberta. $25 million in one-time funding has been allocated in 2014/2015 to support long term social and psychological recovery for flood impacted Albertans, as well as to promote resiliency and enhance provincial capacity to respond to future disasters.

Sources of health funding

Of every dollar in health funding:

  • 78 cents comes from Alberta’s general revenues;
  • 20 cents comes from the Government of Canada; and
  • 2 cents comes from the Alberta Heritage Foundation for Medical Research Endowment Fund, the Alberta Cancer Prevention Legacy Fund and other revenue sources.

Figures as of March 6, 2014