United Conservative Party leader Danielle Smith addresses party members at their annual meeting in Red Deer, Alta., Nov. 2, 2024.Jeff McIntosh/The Canadian Press
Alberta Premier Danielle Smith said on Saturday the provincial health minister will be removed from making decisions tied to investigations into allegations government officials interfered in the health system on behalf of private firms, but will not be bumped from her job.
The Premier added that Health Minister Adriana LaGrange will remain in charge of overhauling the healthcare system, a key priority for the United Conservative Party. Ms. Smith, on a call-in radio show, confirmed one minister demanded Ms. LaGrange be removed from the health portfolio, but said his suggestion has not gained momentum among cabinet and caucus.
The Globe and Mail reported on Feb. 5 that Alberta Health Services’s former chief executive alleges government officials leaned on her to sign deals for private surgical facilities with payment terms she alleges were overpriced when stacked up against comparable contracts. Alberta’s Auditor-General confirmed he is examining the contracting and procurement processes at AHS and Alberta Health with respect to chartered surgical facilities (CSF), pain medication for children, and COVID-19 personal protective equipment.
Ms. LaGrange’s department has also said it will investigate allegations tied to AHS, but has not said whether its review will extend to her own ministry.
Infrastructure Minister Peter Guthrie has demanded Ms. LaGrange step aside during the investigations, Ms. Smith confirmed.
“Not everyone agrees with Minister Guthrie,” Ms. Smith said on “Your Province. Your Premier,” a bi-weekly show on Corus radio stations in Calgary and Edmonton.
“But we do agree that we have to make sure that Minister LaGrange is removed from making any decisions around this file.”
“That’s why it has got to be independent. It has to be overseen by another body,” the Premier added.
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Education Minister Demetrios Nicolaides and Advanced Education Minister Rajan Sawhney, at an unrelated press conference Saturday morning, said they do not agree with Mr. Guthrie’s demand Ms. LaGrange be removed from the health file.
Neither minister explained why they disagreed with Mr. Guthrie. Mr. Nicolaides said he recommended, as the Premier previously suggested, that the Auditor-General expedite his examination.
The government previously indicated Alberta Health’s investigation into AHS would involve an external party.
Ms. Smith said on the radio show she plans to provide more information on this next week. “We are identifying those individuals right now,” she said.
The Premier previously said she planned travel to Washington, D.C., to attend the National Governors Association meeting next week. She has been adamant that diplomacy, rather than retaliation, is the best way for Canada to defend itself against U.S. President Donald Trump’s tariffs.
The Alberta government’s public itinerary, distributed on Friday, does not reference Ms. Smith travelling to Washington next week. Sam Blackett, her spokesman, did not acknowledge a message seeking more information.
Ms. Smith has not yet faced the media to address the allegations, save for a brief exchange with a reporter at a press conference with Canada’s other premiers in Washington, D.C., on Wednesday, when she said she first learned of the allegations in the press.
Athana Mentzelopoulos, AHS’s former CEO, expanded on her allegations in a lawsuit filed Wednesday. The allegations have not been tested in court. Ms. LaGrange has said she intends to file a statement of defence.
Ms. Smith came to power on a promise to revamp the healthcare system and the government is in the midst of dismantling AHS. Alberta is replacing the provincial agency with four organizations, each focused on a specific part of the healthcare system, and shifting procurement to Alberta Health.
The Premier endorsed Ms. LaGrange’s management of this process.
“I think she’s doing such amazing and important work on the refocusing of the health care system. This is a very crucial period of time – these next six months. And I need her to continue at that,” Ms. Smith said.
The Alberta government dismissed Ms. Mentzelopoulos on Jan. 8, two days before she alleges she was scheduled to meet with the Auditor-General to discuss what her internal investigations at AHS uncovered. Ms. Mentzelopoulos is suing the government for wrongful dismissal, arguing she deserves the $1.7-million she would have been paid had her four-year contract not been cut short after just one year.
Ms. Smith said she wants to get to the bottom of the allegations, but noted Ms. Mentzelopoulos is suing for a large sum of money.
“Right now we have allegations, in a statement of claim, asking for a bunch of money – for a payout. And we have to put it into that context,” Ms. Smith said.
The government argues that CSFs are more efficient and add capacity to the public healthcare system. Critics argue that while they can be valuable, their proliferation can sap the broader public system of crucial resources like surgical specialists.
Ms. Smith said Alberta needs to review Ms. Mentzelopoulos’s allegations and address any potential wrongdoing.
“But we also have to ask the questions about why it has taken Alberta Health Services literally years and years and years to finalize some of these contracts that were awarded even before I got into office,” Ms. Smith said. “And are they doing it because they don’t support moving to more chartered surgical centres.”
Ms. Mentzelopoulos has not commented on the allegations.