Alberta Premier Danielle Smith has announced a plan to lease newly built hospitals to Alberta Health Services (AHS) with the option to transfer operations to a different provider if AHS is not meeting performance expectations. Smith shared the proposal during a members-only United Conservative Party town hall in Drayton Valley on August 17.
While CBC was not present at the event, details were obtained from videos shared on social media by Alberta podcasts *The Breakdown* and *The Lavigne Show*.
Smith’s government is currently reorganizing the provincial health authority into four distinct bodies that will oversee acute care, primary care, continuing care, and mental health and addiction services. AHS will continue to manage acute care under this new structure.
Smith clarified that the province intends to keep ownership of newly constructed hospitals and lease them to operators, asserting, “If our operator isn’t delivering the services we require, we’ll reclaim control.” The goal is to encourage AHS managers to improve their performance by introducing the possibility of transferring hospital operations to another provider.
Initially, this approach will apply only to new hospitals, but Smith hinted that the province may consider reclaiming ownership of some existing hospitals in the future.
The Premier’s office chose not to comment on the plan and referred inquiries to the office of Health Minister Adriana LaGrange. Andrea Smith, press secretary for LaGrange, confirmed in a written statement that the government expects better outcomes from AHS, particularly in providing acute care in rural and remote areas. She added that the government is asking AHS to develop strategies to address these concerns, with the long-term goal of shifting AHS’s focus to acute care services.
Andrea Smith emphasized that the government is committed to maintaining critical health care partnerships to ensure Albertans receive timely care. She noted that selecting the right partner to deliver these services is crucial, and the government will continue to evaluate the situation.
Concerns from Critics
Health care critics have expressed alarm over the proposal, arguing that it will not necessarily lead to better care for Albertans. Dr. Luanne Metz, the NDP’s health care critic, warned that this plan could cause more instability in the health care system. “Competition among hospitals doesn’t work,” she said, adding that it may signal a shift toward a U.S.-style health care model.
Andrew Longhurst, a health policy expert at Simon Fraser University, also voiced concerns, stating that bringing in external operators to run Alberta’s hospitals won’t address underlying issues like staffing shortages, which are national challenges.He characterized the plan as “misguided” and “harmful,” particularly considering the existing vulnerability of Alberta’s health care system.
Longhurst further argued that fostering fear among hospital managers is counterproductive and suggested that Smith’s plan is motivated by ideology rather than the best interests of Albertans.
