Government directive from Alberta’s health minister reveals ‘enhanced role’ with AHS contracts

A government directive shows the health minister stripped AHS of power to negotiate contracts for private surgical facilities.

New evidence from a government directive shows Health Minister Adriana LaGrange removed Alberta Health Service’s power to negotiate contracts for private surgical facilities after the agency’s then-CEO pointed out internal concerns over high-priced contracts.

In a ministerial directive dated Oct. 18, 2024, LaGrange declared chartered surgical facilities (CSFs) a “critical component” of Alberta’s health-care system along with existing surgical services.

The five-page document shows government intervention on behalf of the Alberta Surgical Group and declares that LaGrange would be mandating CSFs because of the disintegration and refocusing of Alberta Health Services (AHS).

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The document goes on to say that LaGrange’s department “intends to take an enhanced role with respect to CSFs.”

CTV News asked LaGrange directly about the allegations Tuesday morning, and she noted that there are issues with AHS but that she doesn’t have any additional comments to make at this time.

“I really do look forward to the auditor general’s review and the internal review that we’re doing,” she said.

“We are going to have an external party do it, and I’m looking forward to making information public so that people know what’s going on. People deserve to know what’s going on and we want to make sure that happens.”

Later Tuesday, LaGrange’s office, in response to media questions, clarified that a third party will assist in the review being conducted by Alberta Health Services but that overall control remains with the government.

The Alberta government terminated the four-year contract of former AHS CEO, Athana Mentzelopoulos, on Jan. 8, just two days before she was alleged to have a meeting scheduled with the province’s Auditor General Doug Wylie about her internal investigation into AHS procurement contracts.

In an emailed statement, the minister of health’s office said the changes at AHS had nothing to do with the ongoing investigations into surgical contracts.

“This is evidenced by the fact that since learning of potential concerns with CSF procurement, Alberta’s government repeatedly asked AHS for documentation to substantiate the concerns that were raised,” the statement reads.

“It was extremely concerning that no substantive information and documentation had been provided to the government after nearly eight months of requesting it, and that is why Minister Adriana LaGrange issued a directive in December to compel AHS to share all details related to CSF contracts and contracting with Alberta Health.”

“This was not about shutting down the review AHS had started; to the contrary, it was about understanding whether there was actual evidence of the problems raised by the former CEO of AHS, or whether AHS management was simply attempting to disrupt the growth of CSFs in the health system.”

CTV News has reached out to Mentzelopoulos’ lawyer, Dan Scott, who wrote a letter to AHS on Jan. 20 on behalf of his client, alleging that Premier Danielle Smith’s then chief-of-staff interfered in AHS’s procurement prices on behalf of private companies.

The letter obtained first by the Globe and Mail also alleged that Mentzelopoulos’ authority to negotiate deals for chartered surgical facilities was taken away by the province. CSFs are privately owned organizations that perform operations paid for by the government as part of the public health-care system.

It went on to allege Mentzelopoulos was pressured by government officials to extend a contract for Alberta Surgical Group Ltd. – a CSF firm in Edmonton – and to negotiate deals for new facilities in Red Deer and Lethbridge.

“AHS executed an extension with ASG Edmonton in October that secured lower rates for contracted services than those set out in the original contract. No agreements have been finalized for facilities in Red Deer or Lethbridge,” a spokesperson for AHS said in a statement.

Mentzelopoulos alleged she was uncertain who owned some of the CSFs as well, which added to the questions in her investigation.

Meanwhile, the province’s auditor general has confirmed his team will look into AHS contracts and conduct its own review. The RCMP is also aware of a complaint related to the allegations.

Over the weekend, Premier Smith released a statement and denied any wrongdoing while asking AHS and the auditor general to expedite their reviews.

Still, calls are now growing louder for independent investigations.

CTV News has since reached out to Premier Danielle Smith’s office for comment but has not heard back as she spends the day in Washington, D.C., alongside Canada’s premiers for meetings amidst U.S. tariff threats.

‘Extremely serious allegations’: Friends of Medicare

The allegations of political interference into Alberta’s procurement process with for-profit surgical facilities are prompting more calls for both Premier Danielle Smith and Health Minister Adriana LaGrange to step down.

Chris Gallaway, the executive director of Friends of Medicare, says that since being elected, the Smith government has pursued an “aggressive privatization agenda including signing secretive contract” and that the health minister “must step aside.”

“These are some extremely serious allegations coming out, and every day they seem to get worse. Evidence of a government directive from the Ministry of Health interfering in contracting decisions shows this government is willing to grievously overstep their authority in order to further their privatization agenda in our health care,” he said.

“Yet, the premier and the health minister have been concerningly quiet. They need to show they are taking these allegations seriously. The premier needs to answer publicly to Albertans and respond to questions from the media.”

Gallaway adds that Alberta taxpayers will also lose trust if accountability or transparency on these issues isn’t provided through a thorough independent investigation.

“At this point, Albertans cannot trust that it’s only surgical procurement that needs to be investigated.”

“The auditor general’s investigation should review the procurement processes for all contracts given to for-profit health care providers, and any concerning evidence should be shared with the RCMP immediately.”