Alberta
Province trumpets $105 million in new health spending for Rural Health Facilities Revitalization Program
Strengthening rural health care
Budget 2023 expands rural health supports so Albertans can have additional access to modern health facilities and the care they need where and when they need it.
Alberta’s government is committed to expanding and modernizing rural hospitals and other health facilities across the province to protect quality health care, grow system capacity and support the best front-line health care workers in the world.
Having access to quality health care when and where Albertans need it includes expanding capacity to provide better access for Albertans living in rural and remote areas of the province.
“We are making sure we have the necessary funding in place to build and strengthen health care in our rural communities and address barriers to care for those looking for support and treatment close to home and family. This work includes programs that focus on how to recruit, retain and even train more physicians, nurses and other professionals in areas outside of the cities.”
Budget 2023 provides $105 million over three years for the Rural Health Facilities Revitalization Program, including $75 million in additional funding for capital projects in rural Alberta.
The program supports strategic renovations and developments in health facilities throughout the province, with an emphasis on emergency departments, EMS stations, surgical and dialysis clinics, and other clinical services to improve access to health care in rural Alberta.
Expanding capacity in the health care system also means having health care workers to fill those spots. In response, Alberta’s government launched the Health Workforce Strategy to attract and retain the health care workers needed now and create more training opportunities for local students and internationally trained medical graduates.
“All Albertans, no matter where they live, need and deserve access to our health system. Physicians are a critical part of that system, especially in rural areas where we are trusted to support the needs of neighbours, friends and colleagues during all phases of life. It is a special calling to work in rural health care, but it can be tremendously rewarding for those who pursue it.”
Rural Albertans are especially affected by the nationwide shortage of health care workers. To address this growing need, the Health Workforce Strategy provides $113 million to add 100 residency training spaces for newly graduated doctors, particularly in rural areas and specialist fields. Creating these new training spaces will provide more opportunities for Alberta students to learn, train and practise in their home communities.
In addition to this investment, a further $1 million will go toward exploring ways that regional post-secondary institutions, such as the University of Lethbridge and Northwestern Polytechnic in Grande Prairie, can help deliver medical education outside of Edmonton and Calgary.
“Whether it’s emergency care or surgeries, primary care or continuing care, Albertans deserve equitable health care services in their communities. I am proud of the investments government is making through Budget 2023, both with infrastructure funding and workforce planning strategies, to help support the future of rural health care in our province.”
This year’s budget also funds the new agreement with the Alberta Medical Association, further stabilizing the health system and focusing on Alberta’s rural communities. Under the agreement, more than $250 million over four years will go to addressing pressures, including recruitment and retention programs so more Albertans can access family doctors, and supporting physicians so their practices remain viable.
Budget 2023 secures Alberta’s future by transforming the health care system to meet people’s needs, supporting Albertans with the high cost of living, keeping our communities safe and driving the economy with more jobs, quality education and continued diversification.
Quick facts
- The Rural Health Revitalization Program provides capital funding for revitalizing select rural health facilities throughout the province.
- Budget 2023 invests $105 million over three years for the Rural Health Facilities Revitalization Program. This includes $75 million in additional funding for new capital projects in rural Alberta.
- To date, about $65 million has been committed to 22 projects across the province, including emergency department renovations, upgrades to EMS stations and new dialysis spaces.
- An investment of $237 million over three years towards the Alberta Surgical Initiative Capital Program will help reduce surgical wait times and help Albertans receive the surgeries they need.
- This includes $120 million in new funding for projects in 15 communities across the province to expand and modernize operating rooms in public hospitals.
- Budget 2023 includes $64 million over three years to continue the La Crete Community Health Centre capital project to provide increased access to maternity health services.
- $11 million over three years is part of a $23.5-million commitment to expand the renal dialysis program at the Chinook Regional Hospital in Lethbridge.
- This project will relocate the dialysis unit to provide additional treatment spaces and address patient and staff safety concerns with the current site.
- $3 million over three years in planning dollars is committed to the North Calgary/Airdrie Regional Health Centre.
- $3 million over three years in planning dollars is committed to expanding the Strathcona Community Hospital.
- Planning dollars are also committed for new or upgraded facilities in Bassano, Cardston and Whitecourt.
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
Alberta
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