Acute Care Alberta Extends $34M Contract Amid Procurement Probes

UPDATE: Acute Care Alberta has just announced a $34 million contract extension with the Alberta Surgical Group (ASG), a private surgical facility currently under investigation for procurement irregularities. This urgent development means ASG will continue to provide approximately 4,000 orthopedic surgeries, including critical hip and knee operations, at its south Edmonton location from November 1, 2025 until October 31, 2026.

This latest contract marks the third extension for ASG, raising significant concerns amid ongoing probes into potential conflicts of interest surrounding health procurement practices in Alberta. Former Alberta Health Services CEO Athana Mentzelopoulos is currently embroiled in a wrongful dismissal lawsuit against AHS and the provincial health minister, alleging that her termination followed her inquiries into questionable contracting practices associated with ASG.

In court documents, Mentzelopoulos claims that ASG was charging excessively high rates for procedures compared to other chartered surgical facilities (CSFs) and that she faced political pressure to approve the extension. Both AHS and the government have denied these allegations, asserting that she was dismissed for failing to fulfill her duties. These claims remain unproven in court.

The government’s decision to extend ASG’s contract comes as Alberta’s auditor general and the RCMP investigate claims of political interference in health contracting. A recent report by retired Manitoba judge Raymond Wyant highlighted serious breaches of protocol in how AHS awarded contracts to surgical facilities, including ASG’s initial failure to secure a bid but subsequent award of a temporary contract without a new proposal process.

Critics are questioning the rationale behind continuing with ASG amid these investigations. Lori Williams, an associate professor at Mount Royal University, stated, “We want value for money… and those questions, I think, are being raised currently.”

Opposition NDP health critic Sarah Hoffman expressed understanding for a short-term extension to maintain surgical access but criticized the long-term implications, stating, “It’s clear from the documents that this isn’t fiscally responsible at all.” She reiterated calls for an independent public inquiry into health procurement practices.

In a related development, the government is moving forward with plans for a new surgical facility in partnership with the Enoch Cree Nation. The $80 million River Cree Medical Professional Centre is set to open by the third quarter of 2026, aiming to enhance surgical capacity in the Edmonton region with a culturally safe environment for Indigenous patients.

While the government has confirmed that contract negotiations with Prairie Surgical Centre for proposed facilities in Red Deer and Lethbridge have been canceled, it remains to be seen how the ongoing investigations will impact the broader healthcare landscape.

Alberta Health Services has issued a request for interest to identify new surgical providers for publicly funded procedures, indicating a shift in procurement practices as the province aims for more transparent and accountable healthcare delivery.

As the situation develops, Albertans are urged to stay informed on the implications of these contract extensions and ongoing investigations, which could reshape the future of healthcare services in the province.