Alberta’s auditor says taxpayers lost $109M in lab testing debacle

Alberta's auditor general says the province's failed attempt to privatize community lab testing cost taxpayers $109 million.

Alberta’s auditor general estimates the government’s failed effort to privatize community lab testing services left taxpayers on the hook for about $109 million.

Auditor general Doug Wylie, in a new report issued Wednesday, said politicians at the time pushed the deal forward despite warnings from bureaucrats that the expected savings wouldn’t materialize.

He said there were major failures with oversight, records management and financial analysis in the deal with private lab tester DynaLife.

In the spring of 2022, the Alberta government signed a 15-year contract with DynaLife to fully privatize lab testing services in the province.

But as wait lists for testing stretched into weeks and months, the province terminated the contract, bought out the company and returned lab testing to the public system.

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Wylie said his investigation was somewhat hindered because some documents he requested were withheld.

In an interview, he said he’s putting forward two basic recommendations — follow existing procedure and keep better records of decision-making.

“Whether it’s a governance process, an accountability process, a procurement process, they’re all designed to ensure that initiatives are achieving their objectives, that taxpayers’ dollars are being utilized wisely,” he said.

“They exist. You just need to follow them.”

The ministry of primary and preventative health services released the following statement in response to the report.

“In 2023, immediately following the general election and the appointment of Minister LaGrange as Minister of Health, Premier Smith and the Minister identified DynaLife’s inability to provide adequate service for Albertans.

“That is why in June of 2023, we directed that the agreement with DynaLife be terminated and shifted services to Alberta Precision Labs, which has resulted in significant improvements to wait times across the province,” the statement says.

“Although we cannot speak for the conduct of Alberta Health Services in this matter, the government did, in fact, cooperate fully with the auditor general’s investigation and any suggestion to the contrary is incorrect.

We will continue working to ensure Albertans have access to high-quality, dependable lab services across the province.”

With files from CTV News

By Jack Farrell

This report by The Canadian Press was first published Nov. 19, 2025.