The Alberta government is proposing a major increase in hospital and surgical spending in Budget 2026.
If passed, the budget would allocate $13.8 billion in 2026-27 to operate and expand the province’s acute care system, an increase of about $1.7 billion over last year.
Health Minister Matt Jones said population growth and an aging demographic are placing sustained strain on hospitals. He said too many Albertans are waiting longer than clinically recommended for surgeries and other essential care.
The proposed funding would support staffing, surgical activity, emergency services, diagnostics and major hospital upgrades. The budget includes $1.4 billion in capital funding over three years to expand capacity and improve patient flow.
More than $300 million is earmarked to strengthen rural and remote hospitals, including $60 million for rural hospital enhancements to support planning for upgrades and replacements. Another $63 million would go toward developing shelled or vacant space in the Mazankowski Alberta Heart Institute in Edmonton, the Peter Lougheed Centre in Calgary, the Grey Nuns Community Hospital in Edmonton, the QEII Hospital in Grande Prairie and the Tom Baker Cancer Centre in Calgary.
To reduce surgical wait times, the budget proposes $586 million through the Acute Care Action Plan to deliver up to 50,000 additional procedures. It is expected to perform about 330,000 surgeries this year, compared with 318,000 last year.
The plan also includes more than $300 million over three years to upgrade medical device reprocessing departments, sterilizing surgical equipment and support operating room capacity.
Jones said the government is developing a 30-year provincial acute care workforce plan in partnership with Acute Care Alberta. The plan would forecast staffing needs and outline recruitment and retention measures, with input from regulatory bodies, post-secondary institutions and the Alberta Medical Association.
David Diamond, interim CEO of Acute Care Alberta, said the agency was created to help manage capacity and patient flow across the system. He said the funding increase would allow the province to expand services and improve access as demand continues to rise.
The announcement comes amid ongoing negotiations with the Alberta Medical Association over the implementation of triage liaison physicians in emergency departments. The government has budgeted $20 million over two years for the role, but discussions over compensation and related matters are continuing. Jones said he remains optimistic an agreement can be reached and indicated alternative measures could be considered if necessary.
Finance Minister Nate Horner said the budget is based on a forecast of US$60.50 per barrel for West Texas Intermediate crude oil. He said each one-dollar change in oil prices can significantly affect provincial revenue, while cautioning that energy markets remain volatile.
Budget 2026 is before the legislature and must pass before the proposed spending takes effect.