A union representing health care workers is demanding an end to the Alberta Surgical Initiative following revelations that some private surgical facilities contracted by the province were charging more than double the cost of procedures performed in the public system.
A surgery price chart obtained by media outlets estimates hip replacements by Alberta Health Services hospitals were just over $4,000 as of last fall, while Alberta Surgical Group was charging the government $8,300.
"This is an outright betrayal of Albertans," said president Mike Parker of the Health Sciences Association of Alberta, in a statement.
"The UCP tells Albertans for-profit health care would save money and cut wait times through innovation, but instead, we have an out-of-control system where taxpayer dollars are being funnelled into private pockets at double the cost. This is not innovation — this is profiteering at its worst."
The price comparison chart did not include costs covered by AHS, like devices and lab services. Premier Danielle Smith interpreted that to mean that AHS did not include those costs when calculating the price of procedures at AHS so it was like "costing a car including the engine."
"If (AHS) doesn't include all of the costs of implant devices, facility fees, imaging, then you're not comparing apples to apples," said Smith during an unrelated press conference on Monday.
But it was later clarified by sources that rates in the chart for chartered surgical facilities actually exclude costs for items, like devices and imaging, because those are paid for by AHS.
A statement from the Health Minister Adriana LaGrange's office repeated the premier's concerns about the price comparison, and went a step further.
"It is obviously not valid to compare only operating costs in hospital, to the cost of services in a new purpose-built CSF. Any claim based on such a comparison is misleading," the office said.
The office also echoed the premier, who said the Canadian Institute for Health Information (CIHI) was a more credible source for healthcare data. CIHI determined the average cost of delivering a knee surgery in hospital in Alberta to be just over $9,600, and over $10,500 for a hip surgery, excluding capital costs (amortization of costs of land, buildings, and equipment).
The prices for private procedures came out late last week after a wrongful dismissal lawsuit was filed by former AHS head Athana Mentzelopoulos, alleging the premier’s 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.
HSAA said instead of expanding health care access, the ASI program has redirected funding away from public health care, making the system more expensive and less efficient.
“On one hand, the UCP is telling hard working health care professionals that there is no money available for wage increases that keep pace with inflation, or to fill vacancies, for respiratory therapists, social workers, paramedics and all health care workers. Meanwhile, they are forcing the signing of contracts that funnel millions of dollars into the pockets of well-connected businessmen and political insiders,” Parker said.
Mentzelopoulos alleges she was pressured to sign off on the contract extension at rates Alberta Surgical Group proposed, as well as new contracts for two new private surgical facilities in Red Deer and Lethbridge.
Agreements have not been finalized for the proposed facility in Red Deer nor Lethbridge, and AHS has said it would stop awarding contracts to firms involved in the allegations.
The health minister's office said that at this time, there are zero chartered surgical facilities operating in Red Deer.
"Alberta's government is working to determine next steps and we will provide an update at a later date," the office said.
"We are currently considering changes to the acute care funding model that would increase transparency and accountability, and ensure a more sustainable and transparent funding model for acute care in Alberta."
So far, Auditor General Doug Wylie has initiated an investigation into contracting and procurement at both AHS and Alberta Health, and the UCP government said it would also conduct an internal review alongside a probe by an unnamed third party.
The premier, the health minister, Alberta Surgery Group and Marshall Smith have denied any wrongdoing.
Brad Lafortune, executive director of Public Interest Alberta, said there is enough potential evidence to open a formal RCMP investigation into breach of trust and corruption by the government.
"If I were the premier and I was interested in transparency and accountability and good governance, I would have called a public inquiry and asked my officials, both elected and non, to refer any concerning matters to the RCMP, as recommended by the former CEO of AHS and as suggested by Minister Guthrie from infrastructure," Lafortune said.
For the past three Saturdays the non-profit, which advocates on public interest issues, has led protests outside the Red Deer office of Adriana LaGrange, who is also the Red Deer-North MLA.
Lafortune said another protest will be held next Saturday morning to call for accountability from the UCP government.
"That's really all we're asking for."
— with files from The Canadian Press
