Alberta Health Services (AHS) finds itself at the center of scrutiny following allegations surrounding its procurement and contracting procedures. The focus is on Clearpoint Health Network, which entered into a seven-year contract with AHS in 2023 to perform various surgical procedures. Former CEO Vickie Mentzelopoulos has brought forward claims implicating Premier Danielle Smith's then-chief of staff, Marshall Smith, in pressuring her to finalize contracts with Clearpoint. These allegations have prompted both AHS and the Auditor-General to review the contracting and procurement processes.
AHS compensates Clearpoint for surgeries at specific rates: $3,874.73 for each shoulder replacement, $3,622.32 for hip procedures, and $3,276.38 for knee operations. These figures are now under the microscope as concerns about pricing discrepancies emerge. Clearpoint's owner also holds ownership of two numbered companies associated with proposed projects in Red Deer and Lethbridge. The rates negotiated for these projects significantly exceed those of a competitor in Calgary.
The situation escalated when Vickie Mentzelopoulos alleged undue pressure from Marshall Smith to sign deals with Clearpoint, raising questions about potential conflicts of interest and the fairness of the procurement process. In response, AHS has committed to reviewing its procurement procedures, while the Auditor-General is also examining the health ministry's contracting practices.
“The Premier’s then-chief of staff, Marshall Smith, repeatedly put pressure on her to sign these deals, despite AHS reservations about the true ownership and costs.” – Athana Mentzelopoulos
Clearpoint's proposed facilities in Red Deer and Lethbridge would charge for overnight stays at a rate of $1,378.38 when required. This pricing structure has drawn criticism for being significantly higher than what AHS pays another surgical provider in Calgary, which is part of the same health network.
The United Conservative Party defends using private facilities like Clearpoint, arguing that they operate more efficiently than the provincial health authority and help reduce surgical waiting times. Nevertheless, the higher rates proposed by Clearpoint raise concerns about cost-effectiveness.
“CSFs continue to demand higher pricing than the equivalent comparable cost within AHS and with other surgical providers.” – Athana Mentzelopoulos
“To prevent unmitigated upward price pressure, CSF pricing should not exceed the validated AHS internal costs.” – Athana Mentzelopoulos
The involvement of Sam Mraiche, owner of MHCare Medical, adds another layer to the unfolding story. MHCare Medical secured a $70-million government contract in 2022 to import children's pain medication from Turkey. Blayne Iskiw, a business consultant with MHCare, appears as a director in the two numbered companies linked to the Red Deer and Lethbridge undertakings.
Rose Carter, a lawyer representing ASG, disputes the pricing information circulating in the media:
“The pricing you quote below is incorrect so ASG objects to those figures being used.” – Rose Carter
Amidst these developments, AHS contracts thousands of operations annually to Chartered Surgical Facilities (CSFs). However, discrepancies have arisen between CSF demands and the costs associated with comparable services within AHS.
Vickie Mentzelopoulos's dismissal as AHS's CEO on January 8, 2024, has further fueled the controversy. She is now pursuing a $1.7-million wrongful dismissal suit against Alberta.
