Alberta government and doctors formalize legal agreement

The Alberta government and the Alberta Medical Association (AMA) have completed a tentative seven-year legal agreement that will now be taken to physicians for ratification.

The legal agreement is based on the Memorandum of Understanding that was reached between government and the AMA on April 15.


“We are pleased to move a step closer toward finalizing this physician compensation agreement,” said Minister of Health Fred Horne. “The agreement is key to strengthening government’s relationship with our physicians and ensuring long-term stability in the health care system, and will be fundamental in improving access and quality of care for patients.”

“I think all physicians will be relieved to know that the tentative agreement has been completed,” said AMA President Dr. Michael Giuffre.&nbsp “These negotiations were always about much more than money. We now have the structures to allow physicians and government to work together and it’s critical that we move forward together now on making the health care system better for patients. I believe this tentative agreement provides the roles and relationships and stability that is needed for this to happen.”

The seven-year agreement includes:

• Zero per cent increases from 2011-12 to 2013-14, a 2.5 per cent increase in each of 2014-15 and 2015-16, and a Cost of Living Adjustment in 2016-17 and 2017-18;
• A one-time lump-sum payment totaling $68 million, to address various financial challenges faced by physician practices; 
• Creation of a physician compensation committee to oversee compensation practices, including reviewing and adjusting relative payment rates, or fees;
• Commitment to an ongoing agreement that reflects the permanency of the relationship between Alberta Health and the AMA;
• Arbitration rights on prices for fees and specific benefits;
• Recognition of the AMA as the ongoing representative of physicians for compensation negotiations.
• Commitment for Alberta Health and the AMA to continue to work together on how primary care evolves in the future;
• Commitment by Alberta Health to consult with the AMA on a new electronic medical records strategy for physicians; and
• Commitment to consult together on other matters outside the agreement, including on opportunities to find efficiencies and savings within the health system.

Physicians will ratify the agreement through mail-in ballots, with a final vote count to be completed by the AMA on May 30.