Expenditure Highlights

Allocation 

10/11 Funding
(upper limit)¹

Explanation

Transformational
Improvement
Programs

$50 million

Investment in Transformational Improvement Programs will support initiatives identified in the Health Plan. The five TIP programs are: Building a primary care foundation; Improving access and reducing wait times; Choice and quality for seniors; Enabling our people to achieve excellence in health service; Enabling one health service.
All initiatives funded under TIPs will relate back to quality, access and sustainability.

New Seniors’ Beds 

$81 million

More than 1.100 new continuing care beds will open throughout the province in 2010/11.

Relocating Services to
New Facilities

$25 million

Funding allocations are necessary to support increased operating costs (such as utilities and protective services) associated with construction of additional acute care capacity while a strategy is finalized for the appropriate number, mix and distribution of beds in the Province.

Annualization

$148 million

Annualization costs represent additional costs of initiatives which were started part way through the previous year but will incur a full year’s costs in this fiscal year.

Compensation Rate
Increases

$161 million

The bulk of AHS’ expenditures, $5.7 billion or approximately 52% are to pay the people directly employed by AHS in supporting and delivering health services. The compensation allocation is to cover negotiated increases in those costs.

Service Provider Rate
Increases

$67 million

Service providers such as continuing care operators experience annual increases in operating costs. An allocation for increases, which in the case of continuing care facilities will be linked to the commencement of activitybased funding, has been provided.

Medical Fees and
Contract Rate
Increases

$43 million

This allocation provides for rate increases in medical fees and other purchased services, such as housekeeping and information technology.

Non-Compensation
Inflation

$26 million

This allocation provides for rate increases for drugs, gases, medical/surgical supplies and other supplies as well as interest payments.

Savings annualizations 
 

($ 89) million

Annualization of savings resulting from merger and integration activities. This represents additional savings of initiatives which were started part way through the previous year but will incur a full year’s cost offset in this fiscal year.

Subtotal 

$512 million

6% increase in base funding

Savings

($79) million

Additional savings resulting from merger and integration activities.
Primarily comprised procurement initiatives.

Adjustments for Cost Pressures

$303 million

Some of the expenditure reductions in 2009/10 were in part achieved by tight control of vacancies, cost containment in discretionary expenditures such as minor equipment and education. These are not all sustainable in the long term. In addition there are necessary increases in activities in some areas compared to 2009/10 levels. This allocation allows the organization to adjust for such cost pressures. This allocation includes items such as: funding for expired grants, additional Emergency Medical Services transfers, utilities, operating costs related to infrastructure maintenance programs, vacant positions, etc.

Contingency

$38 million

Provision for forecast risk

Deficit Elimination

$527 million 

Allocation of one time funding to pay off 2009/10 accumulated deficit

Equipment and IT
Expenditures

$200 million

Not all equipment and IT expenses are funded through specified government investments. The current year allocation is a reflection of the need for AHS to support necessary priorities, which can only be achieved through investment of operating funds.

Total

$1.5 billion

Number of
Beds/spaces

As of March 31,
2009

As of March 31,
2010

Change 

% Change 

Acute Care

7,719 

7,802 

83 

1% 

Health

1,310 

1,312 

2 

0% 

Addiction

1,295 

1,409 

114 

9% 

Continuing Care Beds 

19,176 

19,557 

381 

2% 

Sub-acute

415 

418 

3 

1% 

Palliative and Hospice 

160 

162 

2 

1%

Other

48 

54 

6 

13% 

Alberta Total

30,123

30,714

591 

2%