Alberta Auditor General Announces Probe of Health-Care Procurements

Alberta Auditor General Doug Wylie speaks in Edmonton on Oct. 4, 2019. Jason Franson/The Canadian Press

Alberta’s auditor general has launched a review of procurement practices by the province’s Ministry of Health and Alberta Health Services (AHS), citing concerns about contracting processes and “potential conflicts of interest.”

Alberta Auditor General Doug Wylie said in a Feb. 6 statement he has begun “an examination” of the procurement and contracting processes at the health ministry and AHS, the health authority responsible for delivery of health care. The review will look at the effectiveness of processes and address “concerns or allegations related to contracting and potential conflicts of interest.”

The examination, which Wylie said may extend to other organizations, “currently pertains to Chartered Surgical Facilities, Medication (ibuprofen or acetaminophen), and COVID-19 Personal Protection Equipment.”

CSFs are private accredited entities that provide publicly funded surgeries to increase service access and reduce wait times, according to the government.

The announcement of the audit comes after media reports about former AHS chief executive Athana Mentzelopoulos, who said she was removed from her position last month after she launched an internal investigation into AHS contracts and procurement practices.

Mentzelopoulos said she faced pressure from Alberta government officials to sign off on commitments for new chartered surgical facilities, said a report from The Globe and Mail. It cited a Jan. 20 letter from Mentzelopoulos’ lawyer to AHS’s interim general counsel.

The report also alleged Mentzelopoulos was pressured to approve a contract extension for the Alberta Surgical Group, one of the chartered surgical facilities.

Mentzelopoulos was dismissed from her position as AHS president and CEO on Jan. 8, two days before she was to discuss her findings with the auditor general, her lawyer’s letter alleges.

The Epoch Times could not obtain a copy of the letter, and Mentzelopoulos did not respond to a request for comment.

A spokesperson for the health minister’s office said Mentzelopoulos’ dismissal was part of a previously announced overhaul of the health-care system that will see AHS transition from a provincial health authority to a hospital service provider.

Mentzelopoulos’ allegations are being reviewed by AHS, “but the interpretation that her termination was due to AHS’s review of certain procurement decisions are false,” health ministry spokesperson Jessi Rampton said in a statement.

“We understand that AHS has been reviewing these procurement decisions and processes and that work will continue until it is completed.”

Rampton said the ministry welcomes the auditor general’s review “into whether AHS procurement practices were properly followed in these matters” and that it will cooperate in the investigation.

The auditor general’s office acknowledged receipt of The Epoch Times’ request for comment, but did not respond to questions about the specific reasons for the audit by publication time.

Since November 2023, the Alberta government has been working to “refocus” its health-care system by creating four organizations, each dedicated to a specific health sector: primary care, acute care, assisted living, and recovery.

The new model “will lead to reduced wait times, improved access to health care services and better health outcomes long term for all Albertans,” according to the Alberta government.

As part of that restructuring, the government on Jan. 8 replaced Mentzelopoulos as AHS head with Andre Tremblay, the deputy health minister. The government said Tremblay’s expertise would help “lead AHS through its transition from a regional health authority to a hospital-based service provider.”

Then, on Jan. 31, the government dismissed the AHS board, appointing Tremblay as the single administrator to “oversee the successful completion of the system refocusing initiative at AHS while also ensuring the agency’s seamless transition to an acute care service provider and hospital operator.” Tremblay retained his position as deputy health minister.

It was the second time an AHS board was removed in recent years. The last dismissal occurred in 2022, when it was temporarily replaced by a full-time administrator to allow for speedier health-care reform, the government said.

Alberta Health Services told The Epoch Times it is looking into Mentzelopoulos’ allegations and won’t comment further until the auditor general’s review is completed.

“We can confirm that AHS is conducting a review of our procurement procedures and processes related to the matters raised by the former CEO,” AHS spokesperson Holly Budd said in a statement. “In the interim, we have paused the awarding of any contracts involving the parties that are involved in that review.”

Alberta Opposition NDP Leader Naheed Nenshi said the former CEO’s allegations are “amongst the most shocking” he has ever seen. He called for two more investigations, one by the RCMP and another by the province’s ethics commissioner, as well as a judicial-led public inquiry.

Nenshi called for Alberta Premier Danielle Smith, Health Minister Adriana LaGrange, and Mental Health and Addiction Minister Dan Williams to step aside until those investigations are completed.

“Albertans have never tolerated this kind of action from a government,” Nenshi told a Feb. 6 press conference in Calgary. “I have never seen anything like this in Alberta.”

Chandra Phillip contributed to this report.