New funding provides stability

Renewing focus on patient care

Story by Sheri Wright

The provincial budget, announced Feb. 9, 2010, has provided AHS with funding certainty over the next five years.

The 2010/2011 funding package granted AHS a total of about $1.3 billion in operating funds (or a 17 per cent increase). This amount covers operational base funding of about $800 million, plus about $500 million in new operational funding. In addition, AHS received about $700 million in one-time funding to help cover projected deficits.

Through this additional funding, AHS can continue to work on its mandate to improve access and quality while delivering health services to Albertans.

“We will be able to demonstrate more easily our commitment to patient care and the values that bring us together as an organization — values that go to the heart of what matters to our patients, our colleagues, our families and friends,” says Dr. Stephen Duckett, president and chief executive officer.

Exciting prospects are ahead for looking at practices and improving services. “We have an opportunity for a collaborative discussion on how best to re-focus on patient care, shortening wait times and improving access, while continuing to innovate and deliver on efficiencies,” says Chris Mazurkewich, executive vice president and chief financial officer.

“Also,” adds Duckett, “knowing what our funding will be five years down the road, we now have a much longer time frame to plan, to consult, to implement. It also means we can more easily plan major innovations and initiatives that might take two or three years to provide a return."

While the stability of this funding package does allow AHS to plan with more certainty for the future, it does not eliminate the need to save costs and spend wisely. Albertans expect AHS to deliver on its promise to provide a patient-focused, quality health system that is accessible and sustainable for all Albertans.

As Mazurkewich explains, “We still have many tough decisions ahead related to how we will manage our resources. Things haven't been easy, and we want to thank everyone for their continued dedication and patience. Your work allows us to continue to transform health care, and produce the results Albertans are expecting."

In fact, if AHS meets the current target of generating $660 million in cost savings, only $150 million of that will be available for new initiatives. The more we can save the more funding we can free up for reducing wait times and improving patient care.

“We are thankful for the great cost-saving ideas that are coming to us from staff in all areas, and excited about engaging you on your ideas of how to improve service delivery,” says Mazurkewich.

Duckett also cautions that the new funding agreement doesn’t provide for AHS’s annual increased spending, which is historically about 10 per cent. “We'll still have to watch our pennies and not expect to receive additional funds in future years.”

Forecast expenses — such as debt payments, commitments for seniors' living facilities, and increased spending for new projects and the costs of labour contracts — show the importance of continuing to create efficiencies and to operate in a fiscally responsible way.

To ensure the health-care system operates within its resources, Mazurkewich emphasizes that “Setting priorities, developing innovative service delivery models and creating better operational efficiencies are a few ways to use the additional funds in an accountable way.”

By staying committed to cost savings and efficiencies, AHS will be able to meet Albertans’ high expectations for quality health care. Says Mazurkewich, “Albertans deserve good value for their health-care expenditures; the target is to have the best health-care system in Canada.”

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