Alberta Health Services (AHS) has come under fire following a controversial prepayment of $28 million to Edmonton-based importer MHCare for a pharmaceutical order. This financial decision was made just over two weeks after hospitals across the province were instructed to halt the use of Parol brand acetaminophen due to a shortage. The province attempted to justify this move by citing a Canada-wide deficiency in children's pain medication. However, the situation has sparked significant debate and investigation.
In December 2022, AHS agreed to a $70-million contract with MHCare for medication imported from Turkish company Atabay. Health Canada approved the import of 1.5 million bottles of medication from Turkey but declined further shipments from an initially planned order of five million bottles. The domestic supply of acetaminophen normalized by mid-2023, prompting AHS to issue a bulletin instructing hospitals to cease the use of Parol, as the Canadian acetaminophen oral liquid shortage had resolved.
“The prepayment made on July 26, 2023, was for a broader pharmaceutical order and not limited to Parol,” said Alberta Health Services (AHS).
The prepayment was intended for years three, four, and five of the contract. Of the $21 million in product received, $14 million comprised Parol. AHS had originally planned to sell some of these medications to other provinces to recoup costs. However, due to a lack of interest, the plan was abandoned by fall 2023.
“That payment was for the remaining balance of the original $70-million agreement, and we have received $21 million in product, bringing the full prepayment amount (amount paid with no product received to date) to $49 million. Of the $21 million in product received, $14 million was Parol.” – Alberta Health Services (AHS)
Documents reviewed by Postmedia suggest that AHS might be seeking to import intravenous acetaminophen, amoxicillin oral suspension, ketamine, and ASA suppositories. However, Health Canada has yet to approve these additional products.
“AHS’ understanding is that MHCare has been awaiting Health Canada approval for these additional products.” – Alberta Health Services (AHS)
The procurement procedures surrounding this purchase have led to allegations of improper conduct, currently under investigation by Alberta's auditor general. Health Minister Adriana LaGrange has faced demands for her resignation in light of these claims.
“The alleged bloated contracts to the UCP’s friends are at the heart of the worst corruption in Alberta history,” stated Sarah Hoffman, Opposition health critic.
As the controversy unfolds, questions remain about the transparency and accountability of Alberta's pharmaceutical procurement processes. The province's decision-making during a critical shortage period is under heavy scrutiny, with implications for policy and governance.
