The UCP says it reached an agreement with the Alberta Medical Association (AMA) that provides a path forward to address health system challenges in the province..On Thursday, the Alberta government announced an agreement has been reached with doctors worth $5.6 billion over four years..On January 17, 2022, Alberta Health (AH) and the AMA initiated an interest-based process with a third-party facilitator, intending to reach a new agreement with physicians..Over the last several months, the provincial government was engaged in interest-based discussions and negotiations. According to the UCP government, the parties worked collaboratively to develop an agreement that supports their many shared goals, including stabilizing the health system, targeting areas of concern, and supporting Albertans’ health care needs..In August, the parties reached a tentative agreement, and according to the UCP on September 28, physicians voted in favour of this agreement (70.2%)..The provincial government will spend $4.40 billion of the total on physician remuneration and one-third of a billion dollars will be allocated to physician support and a practice support program. Alberta Health Services physician compensation will receive $250 million and the remaining $250 million will be spent on education, research, and administration for a total of $5.6 billion. DoctorsdealBreakdown of spending. .Doctors will also receive a guaranteed increase of 4% over the four-year term and a rate increase of 1% in each of the first three years (2022-23 to 2024-25). They will also get a recognition payment of 1% in 2022-23. The UCP said there will be no market correction of rates in the first three years..Additional targeted investments to restore stability and address hotspots will include:.• $252 million over four years primarily for communities and specialties facing recruitment and retention issues..• $40 million lump sum increases for the Primary Care Networks over the first two years to provide support for primary care while the Modernizing Alberta’s Primary Health Care System work is undertaken in 2022-23..According to the Alberta government, over the first three years of the agreement, family medicine and generalists in mental health will get an increase of 4.3%. Neurology will get 4.9% and obstetrics and gynaecology will receive 4.9%. Pediatrics will get a rate increase of 4.7% and psychiatry will get an increase of 4.9%. The UCP stated these percentages do not reflect other additional targeted investments introduced within the agreement..The increase is roughly $750 million to doctors in Alberta..There will be larger average increases for specialties facing greater pressures such as family medicine, which will see an average effective increase of 5.25% when the value of other investments are factored in..“I am very pleased that physicians support this new agreement. It will stabilize the health system, target areas of concern and support Albertans’ health-care needs. With its significant investments, this agreement will provide a path forward to address the challenges facing the health system and issues brought forward by physicians. We will work together with physicians as partners as we move forward," Minister of Health Jason Copping said..To further strengthen the relationship with physicians, the government will repeal Section 40.2 of the Alberta Health Care Insurance Act that gives it the ability to terminate compensation-related agreements. In response, the AMA will stop the lawsuit against the government without seeking costs..The agreement covers four fiscal years, from April 1, 2022 to March 31, 2026..Compensation includes:.1% rate increase in each of the first three years (2022-23 to 2024-25).1% recognition lump sum payment in 2022-23.The first three years of the agreement provide rate stability, with no market corrections for above or below market rates. Year four (2025-26) will involve: Implementation of results from a comprehensive market rate review based on comparisons with Ontario-west jurisdictions.A global rate adjustment to reflect general economic and fiscal conditions.Potential binding arbitration for both the market rate review and global rate adjustment.Gainsharing in years three and four where the AMA can receive 50% of any savings achieved by keeping cost growth below population and complexity..Targeted investments include a total of $252 million over four years through $59 million in annual funding during the term of the agreement and $16 million in one-time investments to support practice viability and recruitment and retention of family physicians and specialists in communities facing issues..$15 million annually for physician recruitment and retention.$12 million annually for the Rural Remote Northern Program.$12 million annually for physician support programs.$2 million one-time investment for the Rural Education Supplement and Integrated Doctor Experience (RESIDE) Program.$20 million annually for the Business Costs Program.$14 million one-time investment for change management and information technology..Recruitment and retention.Up to $15 million annually will be provided to support recruitment and retention for physicians who practise full-time in underserved areas. Up to $12 million annually will be provided to increase funding for the existing Rural Remote Northern Program, which provides financial incentives to physicians who live and practise in underserviced communities. $12 million annually will be spent to enhance certain physician support programs, including the medical liability reimbursement program, continuing medical education program and physician locum programs..A one-time investment of $2 million to increase funding for the existing RESIDE program that provides incentives for family physicians to practise in Alberta’s underserved rural and remote communities..Practice viability.There will also be increases to the Business Costs Program’s rate, which is estimated to increase Business Costs Program spending by about $20 million each year during the term of the proposed agreement. This program provides a premium to support physicians’ business costs, with greater impact on family physicians and specialists in office-based practices..Up to $2 million in one-time funding to assess change management supports for physicians considering alternate payment models..A one-time investment of up to $12 million over two years to support physicians in adopting new, integrated information technology systems that improve patient care across the province..Primary health care.Lump sum increases for Primary Care Networks of $20 million will be provided in each of 2022-23 and 2023-24 to provide additional support for primary care while the Modernizing Alberta’s Primary Health Care System work takes place..“This agreement is good for physicians, patients and the health-care system. It will allow physicians to contribute to decision-making and provide expertise on what matters for patients," Dr. Vesta Michelle Warren, president of the AMA said.."It provides increases in line with other settlements, valuable programs, business cost support, fair processes for working together on compensation or other matters and ways to resolve disputes."."The agreement will help stabilize physician practices that are struggling with rising costs. Stability is critical to retain and attract physicians. There is hard work ahead, but we look forward to rebuilding the relationship with government and seeking solutions through collaboration," Dr. Warren said.
