Alberta’s health authority contract investigation just got a longer leash, extending what has already been months of scrutiny into the province’s largest public employer.
The government-ordered investigation into Alberta Health Services (AHS) contracting practices has received a three-month extension, pushing the final report deadline to September 30. The probe, initially expected to conclude by June 30, is examining how the health authority awards contracts and manages its procurement processes.
Health Minister Adriana LaGrange announced the extension Tuesday, noting the investigators requested additional time to thoroughly examine contracting practices and ensure recommendations are both practical and actionable.
“We want to be sure the investigators have the time needed to complete their important work,” LaGrange said during a media availability in Edmonton. “This extension allows for a comprehensive examination that will ultimately strengthen accountability in our health system.”
The investigation launched earlier this year following public criticism about potential inefficiencies and concerns about value for money in AHS contracts. With an annual budget exceeding $15 billion and responsibility for delivering health services to over four million Albertans, the stakes are considerable.
Ernst & Young, the accounting firm leading the review, has been examining thousands of documents, interviewing dozens of current and former AHS executives, and analyzing procurement patterns dating back several years. Sources familiar with the process indicate investigators have already identified several areas of concern, particularly around sole-source contracts and consultant arrangements.
Dave Weston, a health policy analyst with the University of Calgary’s School of Public Policy, believes the extension suggests investigators have uncovered more complexity than initially anticipated.
“This isn’t entirely surprising,” Weston told me during a phone interview. “AHS has thousands of active contracts at any given time, from multi-million dollar technology implementations to local service agreements. Sorting through which ones warrant deeper examination takes time.”
The investigation comes during a period of significant transformation for Alberta’s health system. Premier Danielle Smith’s government has already made substantial changes to AHS governance, dissolving its board in 2022 and appointing an administrator to oversee operations directly.
The United Nurses of Alberta, representing over 30,000 healthcare workers, expressed concern about the investigation’s focus. “We hope this review isn’t looking for problems to justify further dismantling of public healthcare,” said union president Heather Smith. “Our members see daily how underfunding, not overpriced contracts, is the real issue in our hospitals.”
Healthcare advocacy groups have similarly questioned whether the investigation aligns with improving patient care or is primarily focused on finding cost-cutting opportunities.
“The extension might suggest they’re having trouble finding the waste they presumed existed,” noted Sandra Azocar with Friends of Medicare. “What matters most is that Albertans receive quality care, not how many consultants are hired to examine spreadsheets.”
The provincial government maintains the review is necessary to ensure taxpayer dollars are being used efficiently. Finance Minister Nate Horner has previously suggested the investigation could identify potential savings of “hundreds of millions” that could be redirected to frontline services.
According to Alberta Health’s latest annual report, AHS spends approximately $2.8 billion annually on contracts for services, supplies, and infrastructure. The authority manages over 12,000 active contracts ranging from clinical services to facility maintenance.
Dr. John Cowell, the official administrator of AHS, expressed support for the extended timeline. “We welcome a thorough review that will help strengthen our processes,” he said in a written statement. “Our focus remains on providing excellent care while being responsible stewards of public resources.”
What makes this investigation particularly significant is its scope. Unlike previous reviews that examined specific programs or facilities, this probe is examining system-wide contracting practices, including how decisions are made about which services to outsource versus provide internally.
Rural healthcare advocates are watching closely, concerned that contract changes could disproportionately impact smaller communities. “When services get centralized for efficiency, it’s often rural Albertans who lose local access,” said James Townsend, mayor of Stavely and chair of the Rural Municipalities healthcare coalition.
The extended timeline means the investigation’s findings will arrive just as the legislature reconvenes for its fall session, potentially setting up significant debate about healthcare reform initiatives. Opposition health critic David Shepherd has already questioned whether the investigation will lead to more privatization efforts.
“Albertans deserve transparency about where this is heading,” Shepherd said. “Is this about improving public healthcare or finding justification for more private contracts?”
For frontline healthcare workers like Calgary emergency nurse Samantha Reeves, the focus on contracts seems removed from daily challenges. “While they’re counting paperclips, we’re counting minutes until we can get patients into beds,” she told me during her break at a southeast Calgary hospital. “I haven’t seen a consultant help with a code blue yet.”
The provincial auditor general’s office confirmed they will review the investigation’s findings once complete, adding another layer of oversight to the process.
As the investigation continues through summer, both healthcare providers and patients are left wondering what changes might follow in its wake, and whether Alberta’s already strained health system will emerge stronger—or face yet another round of restructuring.
