Health Services Executive Bonuses, continued (April 13)

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Dr. Taft: Thanks, Mr. Speaker. My first question is to the Premier. Given the information he’s just given that there will be standardized contracts and given that he did the right thing and cancelled bonuses for other public executives, will these standardized contracts contain bonuses, or will he take a firm stand and ensure no bonuses are paid on any of these standardized contracts as they are negotiated?

Which is it?

Mr. Stelmach: Mr. Speaker, the Alberta Health Services Board has a mandate to negotiate senior executive level contracts, and they will look at the most appropriate model used to bring about efficiencies and improve access to health care. That’s why we have appointed the board. They have the responsibility. If it’s going to be top down all the time to every organization like that, we won’t get the kind of achievements that we require in getting efficiencies in the system.

The Speaker: The hon. member.

Dr. Taft: Thanks, Mr. Speaker. My question, then, is to the Minister of Health and Wellness. It’s a matter of public record that this minister will sign off on the contracts of senior executives in Alberta Health Services. Will this minister do the right thing and refuse to sign any contract that has a bonus?

Mr. Zwozdesky: Mr. Speaker, the bonus system, as I indicated, is part of being competitive to attract the very best people into the most senior positions. However, in view of the difficult economic times we’re in, it should be noted that bonuses paid out at the executive vice-president level or at the senior vice-president level are limited to 20 per cent only of their total yearly contracts.

Dr. Taft: Again to the Premier: given that the public experience of Alberta’s health care system is a huge deficit, long waiting lists, overcrowded facilities, and a staff and physician satisfaction survey that is absolutely devastating, why won’t he do the same thing he did for his deputy ministers and other public servants and eliminate bonuses in the health services system? Why not? What are they doing?

Mr. Stelmach: Mr. Speaker, as I said before, the decision rests with the Alberta Health Services Board. They will look at the best way to manage their senior executives. This is an issue that we dealt with within government. It brought about a savings of over $40 million. This came as a request from me and our government to our senior officials, who, by the way, did not contest. They just simply said: look, even though there’s a contractual obligation, we’re willing to give up our bonuses in order to achieve the savings in government that are necessary.

Dr. Taft: Thanks, Mr. Speaker. On October 26, 2009, the former Minister of Health and Wellness addressed the Public Accounts Committee, and he said: “Under the new model that the board chair [of Alberta Health Services] outlined earlier, the board is responsible for hiring, but the final sign-off comes through my office. So I guess it’s joint, but the final signature is [the minister’s.]” My question is to the Minister of Health and Wellness. Will he exercise his authority as minister and refuse to sign any contracts that have performance bonuses in Alberta Health Services?

Mr. Zwozdesky: Mr. Speaker, the bonus arrangement that may be in place between the CEO and the president of Alberta Health Services is between him and the board. If there are performance bonuses, and I suspect there are, with executive vice-presidents or senior vice-presidents, that’s a matter of those vice-presidents and the CEO. What I can tell you is that there are very specific performance measures that are in place right now that deal with increasing access, shortening wait times, and providing Albertans with the outstanding health care excellence that they are accustomed to receiving.

Dr. Taft: Well, how are those performance measures working so far, Mr. Minister?

Why is the salary of the Deputy Minister of Health and Wellness frozen, and why is that bonus frozen but this minister still allowing the senior executives of Alberta Health Services to have a bonus?

Why the double standard?

Mr. Zwozdesky: Mr. Speaker, it’s true that bonuses are frozen for senior members of the government. Alberta Health Services is, of course, an arm’s-length organization. They operate very much with their own scenarios, and they’re doing a pretty good job of handling some very difficult and challenging circumstances. However, the important thing is that there is greater certainty today, that there is more stability, that there is greater predictability, and the five-year funding plan coming forward will ensure it.

Dr. Taft: Mr. Speaker, this is the minister who boasted about being hands on and getting in there, and we know he’s meddled and interfered and stepped into all kinds of decisions. Will he do the right thing and end this distorting system of bonuses that get paid to one very select, already incredibly wealthy section of the public service? Bring it to an end. Do the right thing.

Mr. Zwozdesky: Mr. Speaker, I’ve indicated before and I want to stress this again: you have to engage the best people you can possibly find when you’re administering about a $10 billion operational budget comprised of taxpayer dollars, when you’re managing over 400 health care related facilities and you have a workforce totalling approximately 90,000 people. Those people are working very hard, and so too are these top-level managers.

Alberta Hansard, April 13, 2010

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