Physicians sign new agreement with Alberta Government

As provided by a Government of Alberta media release, the agreement includes the following provisions:

Compensation
- One percent rate increase in each of the first three years (2022-23 to 2024-25).
- One percent 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 per cent of any savings achieved by keeping cost growth below population and complexity.
Targeted investments
- 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 to support recruitment and retention for physicians who practise full-time in underserved areas.
- Up to $12 million annually 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 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
- 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 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.
Working collaboratively
- Physicians will have shared responsibility to review compensation rates, relative to market, and help bring them into closer alignment with peer provinces. Engagement will continue with the AMA during the review process, as well as during the global rate adjustment, through joint committees.
- The agreement also outlines processes and other commitments to jointly address key issues related to physician compensation, including:
  - stipends, overhead and Z-codes
  - caps to daily visits
  - virtual code enhancements for psychiatry
  - extending physician support programs to medical examiners

AMA members voted 70.2% in favour of ratifying the new collective agreement.

President Dr. Vesta Michelle Warren says the deal is good for physicians, patients, and the healthcare system.

“It will allow physicians to contribute to decision-making and provide expertise on what matters for patients,” says Warren. “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.

She adds that the agreement will help to stabilize physician practices, which is critical to attract and retain.

“There is hard work ahead, but we look forward to rebuilding the relationship with government and seeking solutions through collaboration,” says Warren.

Warren was pleased to see that the province repealed Section 40.2 of the Alberta Health Care Insurance Act, which allowed the government the ability to terminate compensation-related agreements.

In early 2020, former Health Minister Tyler Shandro tore up the master agreement with Alberta physicians. This led to a contentious period between the two sides that saw doctors holding a non-confidence vote against Shandro.

In exchange for repealing that power, the AMA will end its lawsuit against the government and will not be seeking costs.

The new agreement is retroactive to April 1, 2022, and will remain in effect until March 31, 2026.

by David Opinko

Physicians sign new agreement with Alberta Government

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