{"id":17923,"date":"2025-02-22T20:29:49","date_gmt":"2025-02-22T20:29:49","guid":{"rendered":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/22\/alberta-surgical-companys-fees-double-public-costs-according-to-ahs-documents\/"},"modified":"2025-02-22T20:29:49","modified_gmt":"2025-02-22T20:29:49","slug":"alberta-surgical-companys-fees-double-public-costs-according-to-ahs-documents","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/22\/alberta-surgical-companys-fees-double-public-costs-according-to-ahs-documents\/","title":{"rendered":"Alberta surgical company\u2019s fees double public costs, according to AHS documents"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<p>A private surgical company at the heart of allegations the Alberta government interfered to secure overpriced medical contracts was billing taxpayers more than twice as much per procedure than it would cost in a public hospital, according to Alberta Health Services documents.<\/p>\n<p><\/p>\n<p>An internal chart included in an email sent by the former head of Alberta Health Services to a Health Ministry bureaucrat, obtained by The Canadian Press, indicates estimates for hip replacements in Edmonton at the public health agency\u2019s hospitals was just over $4,000 as of last fall.<\/p>\n<p>The chart says the firm Alberta Surgical Group was charging the government $8,300.<\/p>\n<p>The cost listed for another private competitor was just over $3,600.<\/p>\n<p>Rose Carter, a lawyer for the company, said its contract prohibits it from discussing details, so \u201cASG is unable to publicly defend itself.\u201d<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<p>She pointed to numbers from a 2021-22 Canadian Institute for Health Information report listing the average cost for a hip replacement in Alberta at $10,700.<\/p>\n<p>The AHS chart notes that its pricing does not include costs covered by the agency, including implant devices, diagnostic imaging and clinical lab services.<\/p>\n<p>In a wrongful dismissal lawsuit filed last week, former AHS head Athana Mentzelopoulos alleges the premier\u2019s then-chief of staff, Marshall Smith, repeatedly put pressure on her to sign deals with the Alberta Surgical Group, despite concerns about costs and who was benefiting.<\/p>\n<div class=\"c-tabs\">\n<p>\n\t\t\t<button role=\"tab\" class=\"c-tabs__tab c-tabs__tab--active\" type=\"button\">More on Canada<\/button><br \/>\n\t\t\t<button role=\"tab\" class=\"c-tabs__tab\" type=\"button\">More videos<\/button>\n\t\t<\/p>\n<\/p><\/div>\n<p>None of the allegations have been proven in court.<\/p>\n<p>Alberta\u2019s auditor general, Doug Wylie, has since initiated an investigation into contracting and procurement at both AHS and Alberta Health, and the United Conservative Party government said it would also conduct an internal review alongside a probe by an unnamed third party.<\/p>\n<p>The email containing the pricing chart, sent by Mentzelopoulos in October, indicates Alberta Surgical Group proposed slightly reduced rates for hip, knee and shoulder surgeries as part of a six-month contract extension it sought for November through to April 2025. But those rates were still significantly higher than AHS internal costs.<\/p>\n<div class=\"c-inlineSignup\" data-newsletter-inline=\"\">\n<div class=\"c-inlineSignup__image\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"170\" height=\"225\" loading=\"lazy\" src=\"https:\/\/globalnews.ca\/wp-content\/themes\/shaw-globalnews\/images\/skyline\/national.jpg\" alt=\"Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.\"\/>\n\t\t\t\t<\/div>\n<div class=\"c-inlineSignup__content\">\n<h3>Get daily National news<\/h3>\n<p>Get the day&#8217;s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>Premier Danielle Smith on Wednesday made reference to many of the prices<strong>\u00a0<\/strong>but did not provide the cost for hip surgeries under AHS as listed in the chart.<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<p>She instead offered an average cost for hip surgeries, citing the Canadian Institute for Health Information.<\/p>\n<p>\u201cWe also want to understand why there are differences, and we hope that the (auditor general) is able to shed some light on that,\u201d said Smith.<\/p>\n<p>Alberta Surgical Group\u2019s existing two-year contract expired at the end of October, and AHS was in the process of negotiating the extension when Health Minister Adriana LaGrange issued a directive stripping the health authority and Mentzelopoulos of their authority to approve contracts.<\/p>\n<p>LaGrange\u2019s directive also required AHS to issue the extension for Alberta Surgical Group at rates set by the minister.<\/p>\n<p>Those rates are slightly less for hip and knee procedures listed in the chart as first proposed by the Alberta Surgical Group \u2014 at about $7,000 \u2014 although the shoulder surgery rate is higher than what the group proposed at $10,500.<\/p>\n<p>Jessi Rampton, a spokeswoman for LaGrange, said the government is concerned AHS\u2019s internal costing for surgeries delivered in AHS facilities is unreliable.<\/p>\n<p>\u201cThey do not appear to include overhead, administration or capital maintenance when calculating the costs of their own surgeries,\u201d she said in an email.<\/p>\n<p>Mentzelopoulos alleges in her lawsuit that she had undertaken a review of the Alberta Surgical Group\u2019s first contract after a meeting with company representatives last summer left her with significant concerns.<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<p>\u201cI have identified provisions that materially differ from similar arrangements between AHS and other contract surgical providers,\u201d Mentzelopoulos wrote in a letter to then-deputy health minister Andre Tremblay in August.<\/p>\n<p>In that letter, Mentzelopoulos said Alberta Surgical Group was under the impression that its contract included a provision promised by AHS representatives that the firm didn\u2019t need to \u201cadhere to the terms of the contract.\u201d<\/p>\n<p>According to the chart, the group\u2019s contract also guaranteed it would be paid for patients to stay for two nights after surgery, which Mentzelopoulos\u2019s letter says was not required and was unique compared to other private surgical providers.<\/p>\n<section id=\"content-dynamic-trending-stories\" class=\"l-inlineStories l-inlineStories--tile u-hide-tablet-landscape\" aria-label=\"Dynamic trending stories section\">\n<p>\n\t\t<span class=\"l-inlineStories__title c-heading c-heading--strikethrough\">Trending Now<\/span>\n\t<\/p>\n<ul class=\"l-inlineStories__posts c-posts c-posts--inline \">\n<li class=\"c-posts__item\">\n\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11027687\/legault-tkachuk-brothers-shameful-4-nations-final\/\" class=\"c-posts__inner\"><\/p>\n<div class=\"c-posts__media \">\n\t\t\t\t\t\t<img loading=\"lazy\" class=\"c-posts__thumbnail\" data-src=\"https:\/\/globalnews.ca\/wp-content\/uploads\/2025\/02\/CP174058754-1-1.jpg?quality=85&amp;strip=all&amp;w=336&amp;h=224&amp;crop=1\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<div class=\"c-posts__details\">\n<p>\n\t\t\t\t<span class=\"c-posts__headlineText\" title=\"Legault calls Tkachuk brothers \u2018shameful\u2019 as hockey, politics clash for 4 Nations final\" data-title=\"\">Legault calls Tkachuk brothers \u2018shameful\u2019 as hockey, politics clash for 4 Nations final<\/span>\n\t<\/p>\n<\/p><\/div>\n<p>\t\t\t<\/a>\n\t\t<\/li>\n<li class=\"c-posts__item\">\n\t\t\t<a href=\"https:\/\/globalnews.ca\/news\/11029175\/bank-of-canada-tiff-macklem-donald-trump-tariffs\/\" class=\"c-posts__inner\"><\/p>\n<div class=\"c-posts__media \">\n\t\t\t\t\t\t<img loading=\"lazy\" class=\"c-posts__thumbnail\" data-src=\"https:\/\/globalnews.ca\/wp-content\/uploads\/2025\/02\/Tiff-Macklem.jpg?quality=85&amp;strip=all&amp;w=336&amp;h=224&amp;crop=1\" loading=\"lazy\" width=\"336\" height=\"224\" alt=\"\"\/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<div class=\"c-posts__details\">\n<p>\n\t\t\t\t<span class=\"c-posts__headlineText\" title=\"Bank of Canada governor\u2019s tariff warning: \u2018There won\u2019t be a bounceback\u2019\" data-title=\"\">Bank of Canada governor\u2019s tariff warning: \u2018There won\u2019t be a bounceback\u2019<\/span>\n\t<\/p>\n<\/p><\/div>\n<p>\t\t\t<\/a>\n\t\t<\/li>\n<\/ul>\n<\/section>\n<p>Mentzelopoulos wrote that she initiated an external review of AHS procedures that led to the contract being awarded in the first place.<\/p>\n<p>Her lawsuit alleges Mentzelopoulos was pressured to sign off on the contract extension at rates the company proposed, as well as new contracts for two new private surgical facilities in Red Deer and Lethbridge.<\/p>\n<p>The chart also contained proposed rates for the new facilities, which are labelled as being owned by Alberta Surgical Group. The proposed rates are identical to rates given to the group as part of its contract extension.<\/p>\n<p>\u201c(Chartered surgical facilities) continue to demand higher pricing than the equivalent comparable cost within AHS and with other surgical providers,\u201d Mentzelopoulos wrote in October.<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<p>According to the chart, the Red Deer and Lethbridge facilities are owned by two separate numbered companies under the Alberta Surgical Group name. Corporate records show Sam Mraiche, CEO of MHCare Medical, is a 25 per cent stakeholder in both companies.<\/p>\n<p>MHCare Medical secured a $70-million contract with the province to import pain medication in 2022.<\/p>\n<p>Alberta received about 30 per cent of the order, despite paying the full cost.<\/p>\n<p>Following that contract, Mraiche provided multiple cabinet ministers and government staff with luxury box tickets to Edmonton Oilers playoff games. The lawsuit says AHS estimates Mraiche-related firms have completed $614 million in government contracts for goods and services.<\/p>\n<p>MHCare\u2019s lawyer has said any allegations of wrongdoing on the part of the company are \u201cunwarranted and unjustified.\u201d<\/p>\n<p>The premier, LaGrange, Alberta Surgery Group and Marshall Smith have also denied any wrongdoing.<\/p>\n<p>The premier said Wednesday she and LaGrange weren\u2019t involved in awarding the contracts at the centre of the allegations. Danielle Smith instead accused AHS leadership of stymieing the government\u2019s mission to expand publicly funded, private surgical delivery.<\/p>\n<p>Smith said AHS would rather keep all surgeries in its hospitals, \u201ceither because of ideology, or to protect their interests.\u201d<\/p>\n<p>She also said the decision to strip AHS of its responsibility to negotiate surgical contracts was to prevent the agency from being in a conflict of interest by drafting contracts for competitors.<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<p>Lawyer Dan Scott, who represents Mentzelopoulos, rejected the implication that she opposed private surgical facilities and expanding role the facilities are to play in the health system.<\/p>\n<p>He said concerns Mentzelopoulos raised last year were about making sure there was proper due diligence before finalizing the contracts.<\/p>\n<\/p><\/div>\n<p><script defer src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;appId=318812448281278&#038;version=v3.3\"><\/script><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/globalnews.ca\/news\/11030862\/alberta-surgical-companys-fees-double-public-costs-according-to-ahs-documents\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A private surgical company at the heart of allegations the Alberta government interfered to secure overpriced medical contracts was billing taxpayers more than twice as much per procedure than it would cost in a public hospital, according to Alberta Health Services documents. An internal chart included in an email sent by the former head of<\/p>\n","protected":false},"author":4,"featured_media":17924,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-17923","post","type-post","status-publish","format-standard","has-post-thumbnail","category-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Alberta surgical company\u2019s fees double public costs, according to AHS documents - Toronto Tribune<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/torontotribune.ca\/index.php\/2025\/02\/22\/alberta-surgical-companys-fees-double-public-costs-according-to-ahs-documents\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alberta surgical company\u2019s fees double public costs, according to AHS documents - Toronto Tribune\" \/>\n<meta property=\"og:description\" content=\"A private surgical company at the heart of allegations the Alberta government interfered to secure overpriced medical contracts was billing taxpayers more than twice as much per procedure than it would cost in a public hospital, according to Alberta Health Services documents. 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