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News Release


April 8, 2003

Budget 2003

Access and health reform the focus for health funding

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Edmonton … Health care in Alberta is receiving an increase of almost a half-billion dollars to ensure access to services and to implement reforms that build a better public health care system.

Total funding for health care is up $492 million, a 7.2 per cent increase that brings the Alberta Health and Wellness budget to $7.35 billion in 2003-04.

“Public health care will cost Alberta taxpayers $20 million every day this year,” said Gary Mar, Minister of Health and Wellness. “Patient care and access to health services is our first priority. Health reform is the tool we are using to make sure patient needs continue to be met.”

Continuing to ensure access to health services accounts for most of the increase in health funding. Half of the Ministry’s total increase, $245 million, goes directly to Alberta’s nine health regions and two provincial boards, mostly as increases in base funding to provide services, and to buy new medical equipment. The Alberta Cancer Board’s additional $18 million includes $11 million for cancer drugs.

The Alberta Mental Health Board receives an added $1.5 million for the four provincial services and programs it retains: forensic psychiatry, suicide prevention, Aboriginal mental health and tele-mental health. All other mental health services are transferred to the nine health regions within the 2003-04 funding levels.

In all, health authority base funding is $4.1 billion in 2003-04.

Some highly specialized services are located centrally, but serve all Albertans. Examples are cardiovascular surgery, neurosurgery, major organ transplants, renal dialysis and psychogeriatric services. Funding for these province-wide services will increase by $23 million, or 6 per cent, bringing the total funding to $415 million in 2003-04.

Other increases that address access to health services include $52 million, largely to meet the increased costs for human tissue and blood products, ambulance services, out-of-province health care and Allied Health Services like chiropractic, optometry, podiatry and oral surgery. An increase of $87 million is budgeted for physician services.

Health reform continues to be a major theme in 2003-04, with many initiatives coming into use to improve public access to services and information. Wait times for surgery and for MRI and CT scans for most major hospitals will be posted on the Internet for public view by the end of this summer. A province-wide telephone information line will be available before year-end.

To further spur health reform, an additional $85 million will support new models for delivering primary health care, expand home care and develop a catastrophic drug program. This includes funds already committed to implement the recommendations from the Premier’s Advisory Council on Health. The total commitment for health reform is $122 million in 2003-04.

The 7.2 per cent increase in 2003-04 will be followed by further increases of 4.3 per cent in 2004-05, and 5.8 per cent in 2005-06. By year three, Health and Wellness funding for Alberta’s public heath care system will exceed $8.1 billion. That is $1.26 billion, or 18.3 per cent, higher than the 2002-03 forecast. These increases include the new federal funding resulting from the 2003 First Ministers’ Health Accord: $248 million in 2003-04, followed by $298 million in year two and $447 million in year three.

Backgrounder: Budget 2003 Summary, Alberta Health and Wellness

Budget Summary:

  • Funding for 2003-04 will reach $7.35 billion, up $492 million or 7.2 per cent over the 2002-03 forecast. Spending will grow by 4.3 per cent and 5.8 per cent over the following two years, and will exceed $8.1 billion by 2005-06.
  • Additional funding includes new federal transfers under the 2003 First Ministers’ Health Accord, including $248 million in 2003-04.
  • Health reform initiatives are receiving $122 million, an increase of $85 million over the previous year.
  • Health authority funding is increasing by 6.3 per cent, totaling $245 million in funding to deliver health services to Albertans. This includes $50 million for medical equipment.
  • There are no increases to health premiums. Premiums will remain the same at $44/month for individual Albertans, and $88/month for families.

Access To Health Services:

  • Health authorities are the major beneficiaries of increased spending, receiving $245 million - half of the entire ministry increase.
  • Regional health authorities receive $176 million, or 4.8 per cent, as an increase to base operating funds to improve access.
  • Health authorities have $50 million in federal funding available for medical equipment.
  • The Alberta Cancer Board receives an increase of $18 million or 12.5 per cent including an additional $11 million for cancer drugs.
  • The Alberta Mental Health Board receives an increase of $1.5 million to fund services it continues to deliver following regionalization, including forensic psychiatry, suicide prevention, Aboriginal mental health and tele-mental health.
  • Spending for province-wide services is up 6 per cent to $415 million to fund highly specialized services, including cardiovascular surgery, major organ transplants, renal dialysis and psychogeriatric services.
  • An increase of $52 million has been allocated to meet increased costs for human tissue and blood products, ambulance services, out-of-province health care and Allied Health Services, including chiropractic, optometry, podiatry and oral surgery.

Health Reform:

  • To move health reform forward, $122 million is allocated to implement various health reforms and meet Albertans’ needs in a more innovative way.
  • The increased funding will be directed to developing new models of primary health care, expanded home care and a catastrophic drug program.

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For media inquiries, please contact:

(Dial 310-000 for toll free access outside Edmonton.)

Michael Shields
Assistant Director
Communications
Alberta Health and Wellness
(780) 427-7164

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