EDMONTON — The UCP announced a Patient-Focused Funding model pilot project on Monday that will introduce a per-procedure funding for select hospitals and procedures, in an effort to enhance transparency, incentivize efficiency, and improve care and access by tying funding to patients. "Behind every surgery is a person waiting to get back to their life," said Premier Danielle Smith. "By expanding surgical capacity and modernizing how we fund care, we are strengthening our health system so Albertans can access the care they need to return to what matters most.”The UCP claims their PFF model is similar to Activity-Based Funding systems, such as those seen in the U.K., Germany, and other countries, where facilities receive funding based on the volume of procedures performed, rather than the current structure, where centres are given a blanket amount. .Phase one of Acute Care Alberta's PFF model was implemented at 12 facilities across Alberta on April 1, applying to hip and knee replacement, cataract surgeries, and shoulder rotator cuff procedures, and will continue throughout the 2026-27 fiscal year. “Patient-focused funding is about making sure resources follow the patient and the care being delivered," said Minister of Hospital and Surgical Health Services Adriana LaGrange. "We continue to learn from leading jurisdictions around the world so we can improve access, strengthen the system and deliver better care for Albertans.”Costs for each procedure will be calculated using a formula that includes the procedure cost, nursing services and supplies, complexity adjustments related to the patient's condition (e.g., additional health factors), and site-specific costs. Procedure costs for day-surgery hip replacements will be set at $8,900, knee replacements at $8,530, and rotator cuff procedures at $6,800. They estimate that roughly 26,000 procedures will be covered by PFF funding in the 2026/27 fiscal year..Acute Care Alberta's PFF guide acknowledges concerns that incentivizing volume may risk the quality of procedures. "Evidence from health‑care research suggests that poor‑quality care typically increases costs over time due to higher rates of complications, longer lengths of stay, and avoidable readmissions," reads the funding guide. "For this reason, quality will be actively monitored to ensure that efficiency incentives remain aligned with strong patient outcomes. Over time, linking prices or financial adjustments to quality performance will also be important to reinforce accountability and support consistently high‑quality care." Factors such as infection, readmission, and patient feedback will be monitored throughout the pilot. “The implementation of patient-focused funding is occurring in a thoughtful and intentional manner to ensure that over time, Albertans can experience the full benefits of an activity-based model, including better access, greater efficiency and improved transparency,” said Dr. Aaron Low, chief medical officer, Acute Care Alberta. Future expansion of PFF beyond the selected facilities and procedures will is expected, according to Acute Care Alberta, including application to all public hospitals and more procedures. .They are also looking to apply PFF to future procurement and contracting decisions for Chartered Surgical Facilities. The PFF introduction was part of a $809 million funding announcement on Monday, including Budget 2026's $525 million commitment over three years to add 50,000 more surgical procedures by upping operating room capacity and expanding the use of charter surgical services. "We are focused on turning capital investment into real results for patients," said Minister of Infrastructure Martin Long. "By upgrading and expanding operating room space in our hospitals, we are improving access to surgical care and building a stronger, more resilient system.”
