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Alberta Government Reorganizes Deputy Minister and Calls for External Review of AHS Allegations


The Alberta government has replaced its deputy health minister and mandated a third-party investigation into allegations of government interference in medical contracts and procurement

The province made the announcement during a Feb. 19 press conference, where Premier Danielle Smith and Health Minister Adriana LaGrange provided updates related to the investigation into allegations of political interference in health procurements made by former Alberta Health Services (AHS) chief executive officer Athana Mentzelopoulos. It was the first press conference since the allegations emerged two weeks ago.

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 the 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 accredited entities that provide publicly funded surgeries to increase service access and reduce wait times, according to the province.

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

Shortly after the allegations surfaced, Alberta Auditor General Doug Wylie on Feb. 6announced a review of the procurement and contracting processes at the province’s Ministry of Health and AHS, citing concerns about “potential conflicts of interest.”
Alberta NDP Leader Naheed Nenshi has said that, if the allegations are true, the case would rank “among the largest scandals ever faced by any government in the history of Canada.” After the Feb. 19 press conference, he called for all those involved in the allegations to step aside, and for a judge-led public inquiry.

He also requested to pause “all procurement on these private surgical centres and re-open shuttered public operating rooms to really start cutting wait times.”

The premier said during the 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 added that if the investigations find evidence of wrongdoing, the province “will fix it immediately,” and reiterated that, as premier, she was not involved in the procurement decisions in question.

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 that LaGrange and Tremblay should be removed while the investigation occurs. Smith has dismissed the calls, saying she has “full confidence” in the health minister.



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