Alberta is undergoing a significant transformation in how healthcare services are governed and delivered. Through the Health Statutes Amendment Act, 2024 and the newly enacted Provincial Health Agencies Act (PHAA), the province is replacing its longstanding centralized model under Alberta Health Services (AHS) with a sector-based structure [1].

This new framework introduces four Provincial Health Agencies (PHAs), each responsible for a specific health services sector. A fifth entity, a Shared Services Organization (SSO), is being developed to support the system by delivering shared operational functions. Although the SSO is not classified as a PHA under the PHAA, it is expected to play a key role in providing coordinated support across the entire healthcare system [2].

Legislative Background

The Health Statutes Amendment Act, 2024 received Royal Assent on May 30, 2024, and came into force on June 21, 2024 [3]. A key element of this Act was the repeal of the Regional Health Authorities Act, which had previously established the legal foundation for AHS to operate as the province’s single regional health authority. Under that centralized model, AHS was responsible for the delivery and administration of most publicly funded health services across Alberta.

With the shift toward a sector-based governance structure, the PHAA was enacted to replace the previous model. The PHAA provides the legal framework for the creation of Provincial Health Agencies by ministerial order. Section 1.9(1) of the PHAA establishes four designated health service sectors with each sector assigned to a responsible minister who may establish a PHA to oversee service delivery within that area [4].

The New Provincial Health Agencies

The following PHAs have been, or are in the process of being, established:

Agency	Sector	Establishment Date	Operational Date
Recovery Alberta	Mental Health and Addiction	July 1, 2024	September 1, 2024
Primary Care Alberta	Primary and Community Care	November 18, 2024	February 1, 2025
Acute Care Alberta	Hospital and Urgent Care	February 1, 2024	April 1, 2025
Assisted Living Alberta	Continuing and Long-Term Care	April 1, 2025	Fall 2025

Each PHA is a corporation and an agent of the Crown, responsible for delivering health services in its respective sector and managing contracts with external providers.

Alberta Health Services: Transition to a Vendor Role

During the transitional period under Part 3 of the PHAA, AHS retains its legal status as a regional health authority [5]. However, it is in the process of being restructured into a provincial health corporation—a new entity type established under the PHAA. These corporations may be created by ministerial order to deliver or coordinate services, provide advisory functions, or perform other roles defined by regulation [6]. AHS is the first organization to be designated as such, through the Alberta Health Services Provincial Health Corporation Regulation [7].

Once this transition is complete, AHS will focus on delivering acute care services under contract to Acute Care Alberta, the new provincial health agency responsible for hospital and urgent care services. In this role, AHS will operate alongside other contracted providers, such as Covenant Health, Lamont Health Care Centre, and chartered surgical facilities. These entities will be accountable to Acute Care Alberta, reflecting a broader shift from centralized oversight to a governance model based on service agreements and sector-specific accountability [8].

Shared Services Organization: Supporting the System Backbone

While the PHAs manage sector-specific service delivery, Alberta is also moving forward with a centralized SSO. This entity, anticipated to be established in summer 2025, will not oversee patient care directly but will provide common operational and professional services to PHAs and service providers [9].

Key Features:

• The SSO will deliver services such as human resources, IT, procurement, legal, facilities management, and clinical supports including allied health professionals.
• It is expected to serve the PHAs, AHS as a vendor, Covenant Health, and potentially other organizations.
• Centralizing these services is intended to reduce duplication and improve consistency across the system.
• The SSO will be created by ministerial order and operate as a Crown agent, with governance and operational details still forthcoming.

Why This Matters

These reforms represent a significant shift in Alberta’s health system governance. The introduction of sector-specific PHAs and a centralized SSO will reshape how services are delivered, funded, and supported. This new model introduces clearer lines of accountability and aims to enhance operational efficiency and coordination across the province.

Organizations involved in healthcare delivery, administration, infrastructure, or professional services will need to assess how their roles and relationships may evolve under the new structure. As the transition continues, it will be important to stay informed about ministerial orders, regulatory developments, and the operational frameworks being established.

We continue to follow the implementation of Alberta’s health system changes and their potential impacts across the sector. It is a dynamic landscape with developments evolving on an ongoing basis. If you would like to learn more about these developments or discuss considerations relevant to your organization, please contact our Health Law Group.

Author

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References

[1] Health Statutes Amendment Act, 2024, SA 2024, c 10.

[2] Government of Alberta. “Refocusing Alberta’s Health System – Continuing the Conversation” (2024). Available at: https://www.alberta.ca/system/files/hlth-refocus-engagement-session-continuing-the-conversation.pdf.

[3] Health Statutes Amendment Act, 2024, supra note 1.

[4] Provincial Health Agencies Act, RSA 2000, c P-32.5.

[5] Ibid, Part 3 – Transition to Provincial Health Agencies.

[6] Ibid, s 2.1.

[7] Alberta Health Services Provincial Health Corporation Regulation, Alta Reg 213/2024.

[8] Government of Alberta, Refocusing Alberta’s Health System: What You Need to Know (2024), online: https://www.alberta.ca/system/files/hlth-refocusing-albertas-health-system-presentation.pdf.

[9] Government of Alberta, Refocusing Alberta’s Health System – Continuing the Conversation, supra note 2.

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