Alberta government’s hospital strategy targets healthcare access but raises privatization fears
The Alberta government’s plan to transfer management of some hospitals to independent operators could improve access to healthcare, according to a researcher at the Montreal Economic Institute (MEI).
Premier Danielle Smith recently announced the strategy, which aims to introduce competition within Alberta’s healthcare system by allowing non-governmental health operators to manage certain hospitals. This move represents a significant shift in the province’s approach to healthcare, with the goal of improving performance and reducing wait times.
Krystle Wittevrongel
Krystle Wittevrongel, director of research at the MEI, highlights the potential benefits of this approach, particularly in addressing Alberta’s longstanding healthcare challenges. “The wait times that have become characteristic of Alberta’s and Canada’s health systems are amongst the longest in the developed world,” Wittevrongel explains. “When we look at European countries that perform better on access to care than we do, the existence of competition between care providers is the norm.”
However, critics are skeptical that Smith’s plan will yield the desired results. They argue that introducing private operators could lead to unequal access to care, with concerns that profit motives might overshadow patient needs. There is also concern that this could set a precedent for further privatization in the healthcare system, potentially undermining the public healthcare model that Canadians value.
Some worry about the potential impact on the public healthcare system, cautioning against creating a two-tier system where those who can afford to pay more receive better care, while others are left behind.
Wittevrongel acknowledges that for the model to succeed, two key factors are essential. First, hospitals need managerial autonomy to make decisions closer to the front lines, enabling quicker and more efficient responses to changing regional health needs. Second, an activity-based funding model should be adopted, where hospitals receive funding based on the number of treatments provided. This model contrasts with the current system, where hospitals operate on a fixed budget, often leading to service rationing as every additional patient represents a cost.
“With the right incentives and competition, (Alberta’s) hospitals could treat more patients than they do now,” notes Wittevrongel. “By introducing such competition, the Smith government is taking a step in the right direction. It just needs to make sure it enacts the right incentives for this reform to reach its full potential and increase access to care in the way Albertans want and deserve.”
While supporters see this as promising to enhance healthcare access, the debate continues as skeptics urge caution, fearing potential downsides to the public healthcare system.
To interview Krystle Wittevrongel, click here.
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