Alberta Budget 2025: Senior Care Operator Stakeholder Brief

Executive Summary

Budget 2025 establishes Assisted Living Alberta as a new provincial health agency under Seniors, Community and Social Services, with $3.8B in operating funding -- a 5% increase driven by population growth. The Continuing Care Capital Program at $649M, Seniors Lodge Modernization at $150M, and Bethany/Good Samaritan continuing care projects provide facility investment. The Aging with Dignity agreement delivers approximately $40M per year for Personal Support Worker wage enhancements. Senior care operators face a governance transition as Assisted Living Alberta launches April 1, 2025, creating both opportunities for improved system coordination and risks of contractual and regulatory uncertainty during the transition period.

Top 5 Relevant Budget Measures

1. Assisted Living Alberta operating at $3,848M -- a 5% or $184M increase from 2024-25 primarily from population growth. This new agency manages the full continuum of care from assisted living, home care, and community care to housing and social supports with wraparound services.

2. Continuing Care Capital Program at $649M over three years -- $178M in 2025-26, $200M in 2026-27, $271M in 2027-28. Supports construction and renovation of continuing care facilities across the province.

Seniors Lodge Modernization at $150M -- $50M per year over three years, providing safe, secure, and affordable housing for lower-income seniors to age in their communities.

Named continuing care projects -- Bethany Continuing Care Centre Calgary ($57M), Good Samaritan Society Continuing Care Edmonton ($63M), Bridgeland Riverside Continuing Care Centre Calgary ($64M), Pine Grove Manor ($16M).

Aging with Dignity agreement -- approximately $40M per year for three years in federal funding for PSW wage enhancements and care improvements, aimed at allowing seniors to receive home care or access care facilities in their community.

Risks

Governance transition uncertainty. Assisted Living Alberta launches April 1, 2025, transferring continuing care from Health to a new agency under Seniors, Community and Social Services. Operators face questions about which contracts transfer, what standards change, and how the governance relationship evolves during the transition.

Operating funding adequacy. While 5% growth exceeds inflation, the seniors population is growing rapidly and care acuity is increasing. Operators with fixed-rate funding contracts may find that the 5% system-wide increase does not translate into adequate per-bed or per-client funding increases at the facility level.

Workforce recruitment. The PSW wage enhancement of $40M per year is helpful but may not close the gap between care worker wages and competing sectors. Continuing care operators compete with acute care (where wages are typically higher), retail, and other service sectors for the same workers. Immigration policy uncertainty could further restrict the pipeline of internationally trained care workers.

Capital project timelines. The accelerating capital profile ($178M to $271M over three years) assumes construction capacity and project readiness. Tariff-driven cost inflation and labour shortages may delay facility openings, leaving the growing seniors population waiting for beds.

Regulatory uncertainty. The transition to Assisted Living Alberta may bring new regulatory standards, licensing requirements, or accountability frameworks. Operators need early clarity on any changes to operate effectively.

Opportunities

Unified continuing care agency. Assisted Living Alberta as a single agency managing the entire continuing care continuum could simplify contracting, create consistent standards, and reduce the fragmentation that has characterized continuing care governance. Operators who engage early can help shape the new system.

Capital facility expansion. The $649M Continuing Care Capital Program provides substantial resources for facility construction and renovation. Operators with approved projects or shovel-ready proposals can access meaningful capital support.

Lodge modernization. The $150M Seniors Lodge Modernization Program at $50M per year supports operators maintaining aging lodge infrastructure. This addresses the reality that many lodges were built decades ago and require significant investment to meet contemporary standards.

PSW wage funding. The Aging with Dignity federal funding provides wage enhancement resources that help operators recruit and retain Personal Support Workers. This is particularly valuable in a tight labour market where care workers have multiple employment options.

Growing demand base. Alberta's seniors population is growing rapidly, creating sustained demand for continuing care services. Budget projections show Alberta Seniors Benefits growing from $540M to $619M by 2027-28, reflecting demographic reality. Operators with capacity to expand will find a growing market.

Likely Government Intent

The government is creating Assisted Living Alberta to establish clear accountability for continuing care outcomes under a single organizational structure. By placing it under Seniors, Community and Social Services rather than Health, the government signals that continuing care is viewed as a social support service integrated with housing, income support, and disability services rather than primarily a clinical service. The capital investment reflects awareness that facility capacity must expand for the aging population. The government expects operators to improve care quality and efficiency under the new governance framework while using capital and wage enhancement funding to address the most acute pressure points.

Immediate Questions to Ask Ministries

1. Seniors, Community and Social Services: What is the governance structure for Assisted Living Alberta, and how will existing operator contracts, service agreements, and funding arrangements transfer to the new agency?

2. Seniors, Community and Social Services: What regulatory standards or licensing changes will accompany the transition, and when will operators receive guidance?

3. Infrastructure: What is the application process and timeline for the Continuing Care Capital Program, and what criteria determine project prioritization?

4. Seniors, Community and Social Services: How will the $40M per year Aging with Dignity PSW wage enhancement be distributed to operators, and what reporting requirements apply?

5. Seniors, Community and Social Services: What quality and performance metrics will Assisted Living Alberta use to evaluate operator performance?

48-Hour Action Checklist

• Review Assisted Living Alberta transition timeline and assess impact on current operations
• Identify continuing care capital project priorities for program applications
• Calculate PSW wage enhancement implementation requirements and cost to organization
• Brief executive team and board on agency transition and budget implications
• Contact Seniors, Community and Social Services for transition briefing
• Review current contracts and service agreements for transfer provisions
• Assess lodge facilities for Seniors Lodge Modernization Program eligibility

30-Day Monitoring Checklist

• Engage Assisted Living Alberta transition team on operator consultation process
• Prepare continuing care capital program applications for priority projects
• Implement PSW wage enhancement and recruit with enhanced compensation offer
• Review workforce recruitment strategy against labour market conditions
• Monitor agency establishment milestones and regulatory guidance
• Coordinate with operator associations on common transition advocacy
• Assess bed availability data against population-driven demand projections

Suggested Message Frames

Frame 1 -- Quality Care for Seniors: Senior care operators provide daily care that enables Alberta's growing seniors population to live with dignity and independence. Assisted Living Alberta creates an opportunity to establish consistent, high-quality standards across the entire continuing care continuum, from home care to facility-based care.

Frame 2 -- Workforce Investment: Quality senior care is delivered by people -- care aides, nurses, therapists, and support staff. The PSW wage enhancement and continuing care funding must enable operators to offer competitive wages and working conditions that attract and retain the workforce seniors need and deserve.

Frame 3 -- Infrastructure Renewal: Many of Alberta's seniors care facilities were built for a different era. The $649M Continuing Care Capital Program and $150M Seniors Lodge Modernization provide the investment needed to create modern, safe, and welcoming environments for the growing number of Albertans requiring continuing care.

Opposition Narratives to Anticipate

"Private operators profit from seniors care." Counter with data on operating margins, reinvestment in facilities, and the role of private operators in expanding capacity that the public system cannot deliver alone. Emphasize quality outcomes and accountability.

"Continuing care is underfunded and understaffed." Acknowledge the challenges while pointing to the 5% operating increase, $649M capital investment, and PSW wage enhancements as meaningful steps forward. Advocate for continued funding growth.

"Reorganization will disrupt care." Address this directly by advocating for transition plans that prioritize continuity of care for residents and job security for workers. Emphasize operator readiness to work with the new agency.

Data Points to Monitor

• Assisted Living Alberta governance structure and leadership appointments
• Continuing care capital program application deadlines and criteria
• PSW wage enhancement implementation guidelines and distribution mechanisms
• Seniors Lodge Modernization Program eligibility and application processes
• Continuing care bed availability and wait list data
• Workforce vacancy rates and recruitment outcomes in continuing care
• Seniors population growth data by age cohort and region
• Alberta Seniors Benefits enrollment and caseload trends
• Federal Aging with Dignity agreement renewal discussions
• Regulatory standard changes under the new agency framework