Alberta Surgical Group has stirred debate with its proposal to extend its contract with Alberta Health Services (AHS) for six months, offering slightly reduced rates for hip, knee, and shoulder surgeries. This proposal, however, remains significantly more expensive compared to AHS's internal costs. The situation has intensified as Health Minister Adriana LaGrange recently issued a directive to strip AHS and its executive vice president, Mentzelopoulos, of their authority to approve contracts. The directive mandates that the contract extension be issued at rates determined by the minister.
The email containing the pricing chart was sent by Mentzelopoulos in October, revealing Alberta Surgical Group's proposed rates. Despite the slight reductions in pricing, the rates remain higher than AHS's internal costs for similar procedures. For example, the cost listed for hip replacements in Edmonton at AHS hospitals was just over $4,000 last fall. In contrast, Alberta Surgical Group charged the government $8,300 for the same procedure. The average cost for a hip replacement in Alberta, based on a 2021-22 Canadian Institute for Health Information report, was $10,700.
The contract between Alberta Surgical Group and AHS expired at the end of October, leading to a complex situation that questions the reliability of AHS's internal costing for surgeries delivered in their facilities. Premier Danielle Smith has indicated that AHS prefers to keep all surgeries within its hospitals. She stated that some decisions might be driven "either because of ideology, or to protect their interests."
MHCare Medical's involvement adds another layer to the ongoing debate. The company secured a $70-million contract with the province in 2022 to import pain medication. Sam Mraiche, CEO of MHCare Medical, holds a 25% stake in Alberta Surgical Group. Rose Carter, a lawyer representing Alberta Surgical Group, mentioned that "ASG is unable to publicly defend itself," highlighting the company's position in this ongoing controversy.
The directive from Health Minister LaGrange requires that Alberta Surgical Group's contract extension be issued at rates set by the minister. This move aims to address discrepancies in healthcare costs and ensure that the pricing aligns with provincial standards. However, it raises questions about transparency and fairness in healthcare contracting.
Alberta's auditor general, Doug Wylie, has launched an investigation into contracting and procurement practices at both AHS and Alberta Health. The investigation seeks to uncover potential inconsistencies and improve accountability within the healthcare system. Premier Danielle Smith emphasized the importance of understanding these differences, stating, "We also want to understand why there are differences, and we hope that the (auditor general) is able to shed some light on that."
The current situation underscores broader concerns about healthcare costs and procurement practices in Alberta. As AHS seeks to manage its resources effectively, questions about cost reliability and transparency remain at the forefront. The government's intervention through ministerial directives may offer a temporary solution but highlights deeper systemic issues that require careful consideration.
