Cuts to AHS budget

The axe is out at Alberta Health Services.

During its board meeting in Lethbridge Thursday morning, it was announced there will be a hiring freeze as well as executive compensation and administrative cost cutting.

There will be a reduction in administrative expenses by at least 10 per cent, that equals to a reduction of $35 million over the next three years.

There is a three year compensation freeze for all management as well as out of scope employees and physician leaders, that’s about 10,000 people.

A hiring freeze has been implemented for all administrative positions and AHS says it will also be looking over the size, role, functions and titles of its senior leadership team.

Alberta Health Services has a $10.5-billion budget; it was to have received a 4.5 per cent increase to its base operating grant this year, but that was instead reduced to three per cent in the budget.

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