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Updated: Alberta rolls back cuts to rural doctor fees, tops up other fees in $81M plan

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Tyler Shandro, Minister of Health is sworn into office, in Edmonton on Tuesday April 30, 2019. THE CANADIAN PRESS/Jason Franson

EDMONTON — Alberta is rolling back more billing changes to fees and adding millions of dollars in extra cash to stop rural doctors from pulling back from hospital duties.

Tyler Shandro says the changes total $81-million, including adding cash top-ups to doctors who work in rural and remote areas. 

They also address two main concerns that have prompted some rural doctors to announce recently that they must cancel hospital duties because they can't make a living under fee changes unilaterally imposed by Shandro in March.

Shandro said one of those rule changes — to no longer allow rural doctors to bill for overhead when working in a hospital — had unintended consequences.

"I've heard from my colleagues, from rural physicians, as well as from rural leaders all across the province, that this policy forces physicians and hospitals to make choices that reduce access," Shandro said Friday. "This was never our intention."

Shandro said there will be $57 million more for rural service top-ups.

He is also rolling back reductions in the provincial subsidy for medical liabilities, which rural doctors have said make it impossible to pay for coverage to work in obstetrics.

The announcement adds to other recent rollbacks on Shandro's March changes. A plan to change fees for longer patient visits — called complex modifiers — has been scrapped and other rollbacks on physician salary top-ups, called clinical stipends, have been deferred.

The announcement is set against a backdrop of poisoned relations between Shandro and the doctors' representative, the Alberta Medical Association, after Premier Jason Kenney's government passed a law late last year giving it the power to unilaterally end the negotiated master agreement with the AMA.

Shandro did just that while simultaneously implementing the controversial changes, some of which are now being rolled back as part of a larger plan to reduce future growth of doctor compensation.

The AMA is now taking the province to court, alleging breaches of charter rights because they were not given access to third-party arbitration.

Christine Molnar, head of the AMA, said in a statement that Shandro's announcement was a positive step during the COVID-19 pandemic but said, "we need long-term solutions to real challenges, not one-time ad hoc decisions. We need a partnership between physicians and government."

A group speaking for Alberta's rural doctors said in a statement that the fundamental issue of trust remains broken.

"We suspect these politically expedient announcements and partial rollbacks will not be enough for most physicians faced with the need to reduce hospital services in July, since we know they can be reversed again at any time," said the Rural Sustainability Group.

"Albertans know we cannot trust this government to uphold its word or its contracts."

David Shepherd, health critic for the Opposition NDP, echoed the rural group statement, saying trust with Shandro is shattered.

"Tyler Shandro knifed rural Albertans and our rural doctors in the back, and now he's offering them a Band-Aid," said Shepherd.

This report by The Canadian Press was first published on April 24, 2020.

Dean Bennett, The Canadian Press

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