The halls of the Alberta Legislature echoed with fresh demands today as Opposition Leader Rachael Notley called for a public inquiry into Alberta Health Services’ procurement practices, raising serious questions about how healthcare dollars are being spent across the province.
Albertans deserve to know if their healthcare dollars are being properly managed, Notley said during a press conference in Edmonton. The growing number of concerns about procurement irregularities suggests a pattern that requires thorough, independent investigation.
The NDP’s call comes after months of mounting questions about several high-profile AHS contracts, including a controversial $60 million deal for medical supply distribution that was awarded without competitive bidding. The opposition claims this represents just the tip of the iceberg in what they describe as systemic problems within AHS purchasing procedures.
I’ve spent the past week talking with healthcare workers in Calgary and Edmonton who describe a procurement system that has grown increasingly opaque. Many expressed frustration but feared speaking publicly.
We see equipment purchases that make little sense on the frontlines, one nurse manager told me, requesting anonymity to protect her position. Meanwhile, we’re constantly told there’s no budget for the basics we actually need.
AHS, which manages approximately $15.4 billion in annual funding, has defended its practices. In a statement released yesterday, AHS board chair Conrad Sauvé maintained that all procurement follows established protocols designed to ensure value for taxpayers while meeting healthcare needs.
The health authority points to its established procurement policies, which generally require competitive bidding for contracts over $75,000. However, exceptions exist for emergency situations or specialized equipment with limited suppliers – exceptions the NDP suggests have become the rule rather than the exception.
Premier Danielle Smith responded to the inquiry request with skepticism. This appears to be another attempt by the NDP to undermine public confidence in our healthcare system, Smith said during question period. AHS procurement already follows strict guidelines and is subject to audit.
The political tension comes as no surprise in Alberta’s increasingly polarized healthcare debate. Smith’s UCP government has pursued significant changes to the province’s health system since taking office, including controversial moves toward more private delivery of publicly funded services.
Dr. Lorian Hardcastle, a health law expert at the University of Calgary, notes that procurement oversight serves crucial functions beyond fiscal responsibility. Proper procurement isn’t just about saving money, Hardcastle explained when I called her yesterday. It’s about ensuring quality, preventing conflicts of interest, and maintaining public trust in essential services.
The request for inquiry specifically mentions several contracts awarded between 2020 and 2023, including:
- A $60 million medical supply distribution contract awarded without competitive bidding
- A $12 million consulting contract related to healthcare restructuring
- Several IT system upgrades totaling over $35 million
According to figures from the Auditor General’s 2022 report, AHS spends approximately $2.3 billion annually on external contracts and purchases. The same report flagged inconsistent application of procurement standards as an area requiring improvement.
The call for inquiry has found support among some healthcare advocacy groups. Friends of Medicare, a non-partisan organization, issued a statement supporting increased transparency. Whether you support the current government or not, Albertans deserve clear answers about how their healthcare dollars are being allocated, the statement read.
For frontline workers, the procurement debate represents more than political theatre. At a coffee shop near the Royal Alexandra Hospital in Edmonton, I met with several healthcare professionals who described how procurement decisions directly impact patient care.
We’ve seen contracts awarded for equipment that ends up sitting unused because it doesn’t meet actual clinical needs, said one respiratory therapist with 15 years of experience. Meanwhile, we’re constantly told there’s no budget for additional staff or equipment upgrades we desperately need.
The NDP has suggested the inquiry should be conducted by an independent commissioner with experience in healthcare administration and should have powers to compel testimony and document production. They’ve requested a comprehensive review of all contracts over $5 million awarded in the past three years.
Economists estimate that healthcare procurement represents between 10-15% of total health spending in most jurisdictions, making it a significant area for potential savings or waste. A 2021 Canadian Institute for Health Information report suggested that improved procurement practices could save provincial health systems between 2-4% of total spending.
Whether the call for an inquiry gains traction remains to be seen. The UCP holds a comfortable majority in the legislature, making it unlikely the government will support the opposition’s request without significant public pressure.
For now, the debate highlights the ongoing tensions in Alberta’s healthcare system and raises important questions about accountability in how healthcare dollars are spent. As one Edmonton doctor told me, This isn’t about politics – it’s about making sure the system works for patients and uses public money responsibly.
As this story develops, Albertans across the political spectrum will be watching closely to see if their healthcare system receives the transparency they deserve.
