Alberta Premier Removes Deputy Health Minister, Orders External Review of AHS Allegations

Alberta Premier Danielle Smith (R), and Minister of Health Adriana LaGrange provide an update on the government's response to allegations by former Alberta Health Services CEO Athana Mentzelopoulos, in Calgary on Feb. 19, 2025. Jeff McIntosh/The Canadian Press

Alberta Premier Danielle Smith has replaced the province’s deputy health minister and is ordering a third-party review of allegations of government interference in medical contracts and procurement.

Smith made the announcement at a Feb. 19 press conference, where she and Health Minister Adriana LaGrange gave updates on the investigation of allegations of political interference in health procurements made by former Alberta Health Services (AHS) chief executive officer Athana Mentzelopoulos.

Darren Hedley, an associate deputy minister of health, will take over the role of acting deputy health minister, replacing Andre Tremblay, who has served as both AHS interim chief executive officer since Jan. 8 and its sole administrator since Jan. 31. The premier said the change separates the roles of deputy minister and AHS head.

“We had heard feedback from our cabinet that they were not comfortable with the mingled role,” Smith said.

Chris McPherson, a newly appointed acting deputy minister of Alberta’s executive council, will work as a third party to investigate the allegations independently of the government, said Smith, “so that we can understand exactly what occurred with regards to the procurement processes in question.”

Mentzelopoulos alleges she was pressured by Alberta government officials to sign new deals for chartered surgical facilities (CSFs), and that she was removed from her position on Jan. 8 because she had launched an internal investigation into AHS contracts and procurement practices. CSFs are private health-care facilities approved by the province to perform publicly funded surgeries to increase access and reduce wait times, according to the province.

The allegations, contained in a lawsuit filed by Mentzelopoulos last week, have not been examined in court.

On Feb. 6, shortly after the allegations surfaced, Alberta Auditor General Doug Wylie announced a review of the health ministry and AHS procurement and contracting processes,  citing concerns about “potential conflicts of interest.”

Alberta NDP Leader Naheed Nenshi said on Feb. 14 that if the allegations are true, the case would rank “among the largest scandals ever faced by any government in the history of Canada.”

On Feb. 19, he called for all those involved in the allegations to step aside, and for a judge-led public inquiry.

He also asked for a pause on all procurement at private surgical centres and a re-opening of “shuttered public operating rooms to really start cutting wait times.”

The premier said during the Feb. 19 press conference that her government wants to know “whether there was any wrongdoing or improper interference with the procurement process, and why, despite months of requests, AHS never brought any substantive evidence or documentation related to this matter to the minister or to our government.”

She said she was not, as premier, involved in the procurement decisions in question and that if any wrongdoing is found, the province “will fix it immediately.”

Smith added the province will set up a “legal conflicts wall” within AHS and Alberta Health to “ensure the complete independence of these investigations without the involvement of the individuals named in the former CEO’s statement of claim.”

Last week, Infrastructure Minister Peter Guthrie reportedly sent a memo to his cabinet colleagues, saying LaGrange and Tremblay should be removed during the investigation. Smith has dismissed the calls, saying she has “full confidence” in the health minister.

LaGrange to File Defence

The health minister says Mentzelopoulos’ dismissal last month was part of a leadership restructuring tied to an ongoing overhaul of the province’s health-care system.

On Feb. 19, LaGrange said she was aware of Mentzelopoulos’ investigation of procurement practices and had urged her to dig deeper but received “no substantive information” from AHS despite months of requests. LaGrange plans to file her statement of defence in coming weeks.

Asked whether the investigations would look into possible government interference, Smith said procurement is handled by the health agency.

“All procurement decisions were made by AHS,” Smith said.