As part of the settlement, Wood said he has to keep many details of the agreement confidential.
But he did say Vancouver Coastal Health employees who require addiction treatment will now have a way of "meaningfully registering their objection" to 12-step programs.
They won't have to attend AA and similar programs "if that approach to treatment conflicts with their religious or non-religious beliefs," Wood said.
Nearly 14,000 people work for the health authority, including 5,500 nurses and 2,700 doctors.
Officials at VCH have yet to respond to requests for comment, but a spokesperson confirmed the settlement terms outlined by Wood.
'12 step does not work for everyone'
The settlement could have implications in other professions and across the country. Researchers who study addiction treatment for health-care workers say it's common for employees to be required to participate in 12-step programs in the interest of protecting public safety.