Premier Danielle Smith, accompanied by Health Minister Adriana LaGrange and Alberta Medical Association (AMA) President Dr. Shelley Duggan, announced a new compensation model for primary care physicians in Alberta, marking a significant shift in the province’s approach to healthcare delivery. The announcement aims to address the growing challenges within Alberta’s healthcare system, particularly in recruiting and retaining family physicians.
The initiative was created in response to feedback from primary care doctors who expressed dissatisfaction with the existing fee-for-service compensation system. Physicians argued that the current structure fails to adequately compensate for the complexities of patient care, especially for those managing chronic conditions.
“We are committed to ensuring that family doctors in Alberta are compensated fairly for the comprehensive care they provide, especially to those with complex health needs,” Premier Smith said at the event. “This new compensation model is a critical step towards making Alberta a more attractive place for physicians to practice and settle.”
The compensation model introduces a hybrid approach, blending fee-for-service payments with elements from non-fee-for-service models. It incorporates evidence-based market adjustments that take into account factors such as the number of patients seen, the complexity of their conditions, and the time spent on both direct and indirect care. A key feature of the new system is the incentive for physicians to manage larger patient panels, with a minimum requirement of 500 patients. This will help alleviate pressures on emergency departments and urgent care centers by encouraging after-hours care.
Minister LaGrange explained that the model also includes bonuses for administrative duties and team-based care, which will encourage collaboration among healthcare providers such as nurse practitioners, dieticians, and pharmacists. The goal is to improve the accessibility and efficiency of healthcare services across the province.
“We’re providing a blend of support and flexibility that will allow physicians to better manage their practices and improve patient care,” LaGrange said. “We believe this model will not only help retain current family physicians but will also attract new graduates and doctors from other provinces.”
The changes come at a time when Alberta is facing a critical shortage of family physicians, with an estimated 600,000 Albertans without a primary care provider. With a rapidly growing and aging population, the province is under pressure to provide accessible, timely healthcare.
In response to questions from the media, Premier Smith highlighted the provincial government’s efforts to recruit more healthcare providers, including recent success in attracting over 260 family physicians to Alberta. She also addressed concerns about the implementation timeline, noting that the model will roll out in 2025 after a pilot phase, provided that at least 500 physicians sign on to the new system.
Dr. Shelley Duggan of the AMA expressed cautious optimism about the new model, stressing that while challenges remain, the approach marks a significant step forward. “This new model will help address some of the gaps we’ve seen in our healthcare system, especially in rural and remote areas,” Duggan said. “It is an important move towards ensuring that Alberta remains competitive with other provinces in attracting and retaining family physicians.”
The compensation model also aims to ease the burden on rural doctors, who often split their time between community clinics and hospitals. In a sign of commitment to rural healthcare, the government has promised additional incentives for physicians practicing in remote areas.
Despite the positive reception from healthcare professionals, there remain concerns about the potential for long wait times, especially as physicians are incentivized to take on larger patient panels. Premier Smith emphasized, however, that the goal is to ensure a balance between quality care and efficient service.
“We believe this new model will lead to healthier communities and a stronger healthcare system overall,” Smith said. “By addressing the root causes of physician burnout and improving compensation, we can create a sustainable system that works for both patients and providers.”
In addition to healthcare reforms, Premier Smith and her team also faced questions about federal policies, including Ottawa’s ambitious clean electricity targets and the ongoing tariff threat from U.S. President Donald Trump. The premier reiterated her position that Alberta would continue to challenge federal overreach in these areas, particularly concerning its right to manage its energy resources and infrastructure.
As Alberta moves forward with this new model, the government remains committed to continuous dialogue with physicians and stakeholders to ensure that healthcare delivery meets the needs of all Albertans, especially those in underserved regions. The coming months will be crucial as the details of the plan are finalized, and the province takes the next steps in strengthening its healthcare system.