Alberta Premier Danielle Smith has stated that the province’s health authority is attempting to recover tens of millions of dollars paid to MHCare Medical Corp. For drugs that were never delivered.
Shifting Strategies in Drug Procurement
Alberta Health Services (AHS) has reportedly abandoned its previous approach of attempting to recoup funds by purchasing additional medication from MHCare, the company at the center of a provincial procurement controversy. According to Ms. Smith, AHS is now focused on recovering the outstanding balance.
MHCare’s lawyer, Scott Hutchison, maintains the company intends to fulfill the terms of its contract, stating, “There is a contract in place. Its terms were negotiated by AHS and approved by AHS at the highest levels.”
Ongoing Investigations and Legal Options
By July 2023, AHS had paid MHCare $49-million for undelivered drugs. Alberta’s Justice Minister, Mickey Amery, indicated that AHS is currently in talks with MHCare regarding potential reimbursement through mediation. Matt Jones, the Minister for Hospitals and Surgical Health Services, stated that AHS is pursuing “contract tools, arbitration and ultimately are evaluating legal options” to recover the $49-million.
The RCMP searched MHCare’s offices in Edmonton last week as part of a year-long investigation into procurement irregularities. The Mounties too searched an accounting firm linked to Sam Jaber, who was listed as MHCare’s chief financial officer in 2022.
Auditor-General and Allegations of Interference
The situation has been further complicated by allegations from former AHS chief executive Athana Mentzelopoulos, who claims government officials interfered in procurement processes and that she was terminated for investigating potential conflicts of interest related to MHCare. The government denies these allegations.
Alberta’s Auditor-General, Doug Wylie, is conducting a separate probe, but his term ends at the end of April. The United Conservative Party rejected his offer to extend his term to complete the investigation. An Alberta Legislature committee has recommended Phillip Peters as the next auditor-general.
Frequently Asked Questions
What is the current status of the drug shipment from MHCare?
Health Canada is still processing MHCare’s application to import intravenous acetaminophen, and MHCare states that the timing of regulatory approvals is beyond their control. Only 30 per cent of the initial order of children’s acetaminophen and ibuprofen was delivered.
What is Alberta Health Services doing to recover the funds?
Alberta Health Services is pursuing multiple avenues to recover the $49-million paid to MHCare for undelivered drugs, including mediation, arbitration, and legal options.
What role is the RCMP playing in this situation?
The RCMP is conducting a year-long investigation into allegations of procurement irregularities in Alberta’s health care system and has searched the offices of both MHCare and an accounting firm linked to a former MHCare executive.
Given the ongoing investigations and legal proceedings, what impact might this situation have on future healthcare procurement practices in Alberta?
