Alberta launches new surgery funding model as part of healthcare overhaul

Alberta is launching a new surgery funding model that ties money to patients.

In a news conference Monday, the province says it began implementing “patient‑focused funding” in 12 public hospitals last month to change how surgeries are delivered and paid for, aiming to increase efficiency and expand capacity.

The move pushes the province away from traditional block funding and toward a system in which hospital operators are paid based on the number and type of procedures they perform. The government has set a price for each surgery, with some rates placed below historical averages to encourage efficiency.

Officials say the model will be used in future contract discussions with private providers, though the initial rollout is limited to public hospitals, including Rockyview General in Calgary and the Royal Alexandra Edmonton.

Premier Danielle Smith announced the shift last year, saying it would reduce costs by fostering competition between public and private surgical providers.

The opposition NDP is accusing Smith and her government of pushing Alberta towards more “American-style privatization.”

“Activity-based funding pushes hospitals towards quicker, less complex procedures at the expense of comprehensive care, proper follow-up and better health outcomes,” reads a statement from NDP shadow minister Sarah Hoffman.

“If this government truly wanted to fix health care, it would invest in public surgical capacity, address bottlenecks across the system, and work with patients, providers, and communities on real solutions.”

Acute Care Alberta has designated the first year as a “learning year” to track system performance. It says it will monitor readmission rates and other quality measures to ensure care does not decline.

The funding model currently applies to knee, hip and cataract replacements, as well as arthroscopic rotator cuff repairs. The government says additional procedures could be added over time.

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Hip surgery

• Day Surgery – $8,900
• No Co-Morbidity – $9,420
• Low Co-Morbidity – $15,700
• High Co-Morbidity – $33,440

Knee surgery

• Day Surgery – $8,530
• No Co-Morbidity – $9,030
• Low Co-Morbidity – $15,850
• High Co-Morbidity – $24,790

Cataract surgery

• Unilateral – $880
• Bilateral – $1,600

Shoulder surgery

• $6,800

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The change 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, along with $284 million to renovate operating rooms, upgrade equipment, and improve surgical infrastructure in public hospitals.

The province is also increasing operating room hours, upgrading hospital facilities and relying more on chartered surgical centres for simpler procedures. Officials say this will free up hospital operating rooms for more complex cases and help shorten wait times.

Alberta performed a record 332,847 surgeries in 2025, with surgical volumes reaching a monthly high in March 2026. The government says the new investments and funding model will expand capacity while keeping the system publicly funded.