Dr. Stephen Duckett, Alberta Health Services president (AHS) and CEO, says a plan is in the works to introduce a voluntary early retirement program for health care staff to help cut costs.

And while the details have yet to be outlined, Duckett said the retirement plan will be open to all managers and staff. AHS feels cutting staffing levels will have a significant impact on saving some cash.

"65 to 70 per cent of our budget is related to human resources and we recognize the need to take a close look at the size of our workforce and where and how our staff can have the greatest impact," said Duckett.

Alberta is now trying to save an extra three per cent from its $10.9 billion health budget.

During the first phase of cost cutting, AHS needs to save $650 million.

Duckett said he doesn't have a goal of how many positions he would like to retire but is trying to avoid any massive layoffs.

"I'm aiming to minimize layoffs, I haven't said we will have any layoffs yet."

The United Nurses of Alberta is now fearful of what's to come.

"Reduce staff which came out of the blue The United Nurses of Alberta (UNA) has been fearful of staff reduction," said Heather Smith, UNA president.

Duckett stressed AHS' first priority is to protect patient care, but he said there is a plan to reduce how much funding will be given to health facilities around the province including Covenant Health, which runs the Grey Nuns and Misericordia hospitals.

"We'll do everything in our power to find the efficiencies in the system so it doesn't affect the patients and residents, although often times that's difficult," said Patrick Dumelie, president and CEO of Covenant Health.

AHS' service providers, which include Covenant Health, long-term care and assisted living providers, and private surgical centres, are also being asked to reduce costs by three per cent starting December 1st, 2009.

"We recognize that this will require difficult decisions on their part as well, which we see as a shared responsibility," said Duckett.