In a startling turn of events, the former CEO of Alberta Health Services (AHS), Maria Mentzelopoulos, has filed a wrongful dismissal lawsuit, alleging undue influence and pressure from high-ranking government officials. The lawsuit revolves around several contentious procurement contracts, primarily involving the Alberta Surgical Group (ASG) and MHCare Medical. Mentzelopoulos, who assumed leadership of AHS on December 7, 2023, claims her refusal to approve certain contracts and her investigation into procurement discrepancies led to her dismissal.
In August 2024, Mentzelopoulos scrutinized the AHS contract with ASG following a meeting with ASG representatives. She identified notable discrepancies when compared to other AHS procurement agreements, prompting her refusal to sign the contract. These differences included provisions such as payments for two overnight stays per procedure, which lacked clinical justification. Mentzelopoulos's decision not to comply with these terms reportedly triggered displeasure from influential businessmen concerned about delays in surgical facility contract negotiations.
“noted significant differences in the ASG contract compared to other AHS procurement contracts,” – Mentzelopoulos
The former CEO's concerns extended beyond ASG. Mentzelopoulos investigated AHS's transactions with MHCare Medical and its CEO, Sam Mraiche. She discovered that Prasad, a key figure in the negotiation of various AHS contracts, had an email address linked to MHCare Medical in November 2022, raising suspicions of a conflict of interest. This revelation came shortly before the Alberta Health Minister instructed AHS to engage in a $70 million children’s acetaminophen purchase order with MHCare.
“Prasad also had an email address associated with a vendor named MHCare Medical in November 2022, “just before the then Minister of Health directed AHS to enter into a contract with MHCare for a $70 million children’s acetaminophen purchase order and supply agreement,” – Mentzelopoulos
Mentzelopoulos also expressed unease about the potential influence of Marshall Smith and possibly the Premier’s Office on AHS procurement decisions. According to her claims, Smith was allegedly appointed at Alberta Health to ensure favorable government contracting outcomes. She was disturbed by the suggestion that Prasad might be taking directives from Smith or the Premier’s Office on issues specifically within her purview.
“Mentzelopoulos was uncomfortable with the inference that Prasad would be taking some level of direction from Marshall Smith, and potentially the Premier’s Office, on AHS procurement and contract issues that were specific to AHS and fell within Mentzelopoulos’ mandate as president and CEO,” – Mentzelopoulos
In January 2024, Mentzelopoulos received communications from the deputy minister of Mental Health and Addictions, further escalating the pressure she felt. Her lawsuit details how protective services conducted a risk assessment, indicating that while she faced no physical harm, influential ASG affiliates might exert political pressure to terminate her if she impeded their financial interests.
“AHS protective services undertook a risk assessment and advised Mentzelopoulos that she was unlikely to be at risk of any physical harm, but that the individuals involved in ASG would likely apply political pressure to have her terminated from AHS if she threatened their financial interests,” – Mentzelopoulos
The lawsuit also highlights an incident from July 2024 when Mentzelopoulos unexpectedly received a draft agreement from Alberta Health. This document proposed granting Alberta Health authority over AHS procurement contracts, including those for private surgical facilities like ASG. Mentzelopoulos argued that this arrangement could result in exorbitant costs for AHS while generating substantial profits for chartered surgical facility owners.
“In July 2024, Mentzelopoulos unexpectedly received a draft agreement from Alberta Health that would have given Alberta Health the right to approve procurement contracts — including contracts for private surgical facilities such as ASG — on behalf of AHS,” – Mentzelopoulos
The tension peaked when Marshall Smith reportedly contacted Mentzelopoulos, conveying anger from "powerful people" over social media posts by an AHS employee. Despite her explanation regarding contract delays, Smith allegedly ended the conversation with a stern warning about the serious nature of those involved.
“Mentzelopoulos explained the reason for the delay, but Smith — who is named nine times in the statement of claim — ended the conversation with a comment that the CSF principals were ‘serious people — do not mess with them.’ ” – Mentzelopoulos
