Spending on health rises 5% despite talk of restraint

The NDP government unveiled a record $21.4-billion health budget Thursday that featured substantial new investments for mental health and the opioid crisis, but also left the opposition criticizing the government’s resolve to rein in rising costs.

The government had vowed to “bend the cost curve” by getting overall health spending growth down to 2.5 per cent by this budget, but failed to reach that goal.

Instead, the cost of health services is estimated to jump $685 million, or 3.3 per cent, from projected spending in 2016-17 and a full five per cent from last year’s budget. The increase also does not include any potential rise in wages resulting from labour talks with the province’s health unions.

“It’s still a pretty good slope, isn’t it?” Progressive Conservative health critic Richard Starke said, poking fun at the NDP’s cost-curve phrase. “There is a lot of talk about restraint in health spending, but it’s still a five-per-cent increase, so the numbers speak.”

Health Minister Sarah Hoffman said her government is making progress on addressing costs in areas like physician compensation, drugs and acute care, but won’t jeopardize front-line services in the meantime. She said health spending growth under her government is still well below the annual hikes of six per cent or more that were often seen in PC budgets of the past.

“We are moving in the appropriate way,” Hoffman said. “I think we now have a much more reasonable rate of growth given the pressures we are facing as a province.”

About $14.7 billion of the health budget will go to Alberta Health Services — a 2.5 per cent increase — although the government is calling on the health authority to cut spending slightly for acute-care services. Health leaders are trying to treat patients more through home care and community care, which are areas set to receive a spending increase.

The health authority is projected to add 1,500 new full-time equivalent positions this coming year, bringing the total to almost 79,500 positions. The budget also featured a substantial hike to address Alberta’s growing opioid crisis. Funding will go to $44 million this coming year from $14 million, on top of $6 million in one-time money just announced by the federal government. As well, the budget features a $15-million increase to address issues related to mental health. Acting Liberal leader David Swann called on the NDP government to be more strategic in its health spending by focusing funding on areas like disease prevention that will reduce costs in the long term.