Alberta's health care procurement practices are under intense scrutiny as the Auditor-General delves into the province's controversial dealings. Allegations of profit-driven motives overshadowing patient care have surfaced, with the Alberta Surgical Initiative facing criticism from health care professionals. The initiative, they claim, prioritizes profits over patients, marking it as a costly failure. This investigation aims to shed light on procurement and contract practices within Alberta's health sector, including the handling of surgical facilities and pain-relief medications.
In 2022, MHCare facilitated a significant deal, importing $75 million worth of generic pain medication from Turkey. Despite this substantial investment, only 30% of the medication, approximately 1.5 million bottles, reached Alberta. Concerns over safety prompted Alberta Health Services (AHS) to halt the use of the product. The medication was part of a broader inventory that included personal protective equipment, COVID-19 rapid-antigen test kits, and pediatric medications. This situation has sparked widespread concern about procurement practices within the province.
The Auditor-General's review will scrutinize chartered surgical facilities (CSFs), COVID-19 personal protective equipment, and pain-relief medications. Athana Mentzelopoulos, the former CEO of AHS, revealed that government officials pressured her to sign deals for private surgical facilities despite her reservations. Her contract was abruptly terminated, and the AHS board dismissed amidst government restructuring. Notably, Ms. Mentzelopoulos's termination occurred just two days before she was scheduled to discuss her investigation findings with the Auditor-General.
MHCare and its affiliated companies have conducted approximately $614 million worth of business with AHS. Between March 2020 and October 2024, AHS placed around 170 orders with MHCare and Mraiche Holding Corporation. These dealings have raised concerns about potential conflicts of interest and the effectiveness of oversight within Alberta's health sector.
The Health Sciences Association of Alberta has called for an independent investigation into private surgical contracts. Mike Parker, President of the association, expressed grave concerns over the situation.
“These disturbing allegations confirm what health care professionals have been saying all along – the Alberta Surgical Initiative is a costly failure that puts profits before patients.” – Mike Parker
Parker further criticized the government's handling of private surgical contracts.
“Private surgical contracts are draining resources from our public health system, reducing overall capacity, and driving up costs,” – Mike Parker
Alberta's opposition New Democratic Party Leader Naheed Nenshi has joined the call for comprehensive investigations into these allegations. He emphasized the need for accountability in governance.
“We deserve an honest government. We deserve a government that does not work to enrich its buddies.” – Mr. Nenshi
“These are amongst the most shocking allegations that I have ever seen,” – Mr. Nenshi
The Royal Canadian Mounted Police (RCMP) is aware of the allegations but has not confirmed whether it will launch an investigation. Meanwhile, AHS has taken steps to address the concerns raised by the former CEO.
“We can confirm that AHS is conducting a review of our procurement procedures and processes related to the matters raised by the former CEO, and in the interim, we have paused the awarding of any contracts involving the parties that are involved in that review,” – AHS spokeswoman
Auditor-General Doug Wylie outlined the scope of the ongoing examination.
“The examination is looking at the effectiveness of management and control processes – including governance and oversight – ensuring value for Albertans while addressing concerns or allegations related to contracting and potential conflicts of interest,” – Auditor-General Doug Wylie
