The Alberta government is under unprecedented fire after introducing a problematic $70 million dollar publicly funded import deal for pain drugs. The agreement features highly liquid oral acetaminophen and ibuprofen to help address a current nationwide shortage. On December 1, 2022, a ministerial order directed Alberta Health Services (AHS) to purchase these medications in specified concentrations. This decision was made after the unprecedented challenges experienced by standard supply chains.
Usually, AHS’s yearly contract cost for liquid acetaminophen and ibuprofen for kids is around $450,000. That urgency to replenish stocks in turn sparked an extraordinary pivot and partnership with Edmonton-based MHCare Medical Corp. This unique collaboration needed a five-million bottle minimum order to satisfy Canadian packaging and bilingual labeling regulations. The province has the option to go with a smaller order of one million bottles for $15 million. Yet by going all-in on a much larger order, they put fiscal responsibility at risk.
In the first half of 2023, MHCare provided just 1.47 million medication bottles to all of Alberta. Complications ensued when, in April 2025, MHCare sent out a termination letter. They disclosed that Health Canada had yet to approve importing all 5 million bottles. The financial costs of this deal are huge. If MHCare brings in the same volume of product at $14/bottle, Alberta will incur a $3 million expense—6.7 times what AHS pays its regular suppliers.
The problematic procurement process led to numerous investigations. These concerns include recent inquiries by the Royal Canadian Mounted Police (RCMP) and Alberta’s Auditor General. Alberta’s Premier Danielle Smith has repeatedly defended the unpopular importation plan. She highlights her administration’s work to address the acute shortage of over-the-counter children’s medications. This shortage overlapped with a significant increase in respiratory illnesses throughout the fall, making matters much worse in community pharmacies.
“The whole reason for procuring from MHCare was that there was an acute continent-wide shortage,” – David Postel, lawyer for MHCare.
While some officials argue that the deal was essential in a time of need, others question the rationale behind spending taxpayer dollars at such inflated rates. Athana Mentzelopoulos, the former CEO of AHS, recently filed a lawsuit. She alleges that she was fired in retaliation for investigating a Turkish contract and other procurement contracts in the health agency.
The timeline around this latest importation effort paints an incredibly complicated picture. In May 2023, facing mounting pressure, health officials acted by directing staff to cease use of the imported acetaminophen within neonatal intensive care units. For one, they discovered it had high risks when administered via feeding tubes. As a result, in under two months hospitals were forced to return to using regular children’s medications.
Kyle Warner, a government spokesman, said in response to the continuing assessments related to this procurement process.
“The results of these reviews will support our work to improve procurement practices and will enable our government to address any other identified issues,” – Kyle Warner.
Public health advocates say that the federal government’s handling of this public health crisis has exacerbated an already dire situation. They argue that the alleged need for these actions was a pretext. The agreement highlights the challenges at play in balancing emerging public health needs with rapidly increasing and potentially unsustainable supply chain pressures.
Those investigations are continuing. Questions still persist about the long-term effects this procurement strategy will have on Alberta’s healthcare system in general, particularly in regard to its capacity to adapt to future shortages. The government’s actions may prompt shifts in how decisions surrounding public health procurements are made and scrutinized in the future.
