Province’s 10-year Keewatin Air medevac deal produces political turbulence By: Danielle Da Silva Posted: 7:17 PM CDT Wednesday, Jul. 19, 2023 Last Modified: 10:25 PM CDT Wednesday, Jul. 19, 2023 Updates

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The Stefanson government has signed a 10-year contract with Keewatin Air to fly critically ill Manitobans across the province, stoking accusations of political favouritism in an election year at the expense of the public health system and patient care.

Government Services Minister James Teitsma said Keewatin Air — a subsidiary of the Winnipeg-based aviation company Exchange Income Corporation — was selected to provide medevac services to Manitobans over the next decade through a competitive tendering process with multiple bids.

EIC’s board of directors includes five Progressive Conservative party donors and was previously chaired by former Tory premier Gary Filmon. EIC chief executive officer Michael Pyle also chairs the province’s venture capital fund, Manitoba First.

“What we are getting from EIC is newer, larger, faster aircraft than the ones we have now,” Teitsma said.

No Tory ministers “stuck their nose” into the competitive tendering process that selected Keewatin Air, he said, dismissing claims of favouritism. The company advanced the best proposal as determined by department staff, he said.

“We have a competitive tendering process that’s designed to be fair and to be transparent, and that’s what was followed to recommend (Keewatin Air),” he said.

The province issued a request for proposals for medical aviation services in May 2022 to transport critically ill patients in Manitoba and surrounding jurisdictions with dedicated aircraft and flight crews 24 hours a day, 365 days a year.

According to the tender, provincial authority Shared Health would provide the medical crews and specialty medical care teams for fixed-wing air ambulance services.

The government began decommissioning the province’s Lifeflight air ambulance service in 2019, and in late 2020 the private, not-for-profit Shock Trauma Air Rescue Service (STARS) took on an expanded role to provide adult air ambulance services.

Opposition NDP health critic Uzoma Asagwara said the decision to award Keewatin Air the contract is concerning, alleging patients have been put at risk and the quality of care has been diminished through the privatization of air ambulance services.

Keewatin Air is named as a defendant in a lawsuit launched by the family of Krystal Mousseau, a 31-year-old mother of two from Ebb and Flow First Nation, who died May 25, 2021, after an attempt to airlift her from Brandon to a hospital in Ontario for care.

“The PCs have been privatizing health care and now they’re giving profits of privatization to their friends,” said Asagwara (Union Station).

“The PCs have been privatizing health care and now they’re giving profits of privatization to their friends.”–NDP critic Uzoma Asagwara

“In the dying hours of their mandate in government, they’re handing out undisclosed — what are likely massive contracts — to their friends.

“No one is surprised by EIC being awarded this contract given the relationship to the PCs.”

On Wednesday, the government refused to disclose the value of its new service agreement with Keewatin Air, stating that information is confidential under the terms of the contract. Since 2019, the province has disclosed more than $33 million in contracts with EIC subsidiaries.

The length of the agreement is also a concern, Asagwara said.

“This government continues to not be transparent, because they know that Manitobans will be upset with those very details, if they were to bring them forward,” the health critic said, adding an NDP government would take a “responsible approach” when reviewing the contract with Keewatin Air and “make decisions that are in the best interest of Manitobans.”

The NDP continues to advocate for publicly delivered health-care services, Asagwara said.

Pyle declined an interview Wednesday, stating the contract with Keewatin Air precludes him from discussing medevac work.

However, in a statement he said EIC and its airlines have existing contracts with four provinces and territories and the federal government and international agreements, and has a track record spanning five decades.

The company has both won and lost bids with the Manitoba government in the past, he said.

EIC subsidiary Carson Air was also awarded a 10-year contract by the NDP government in British Columbia for fixed-wing medevac services last month, he noted.

“We are very excited about this contract to provide critical medevac transport to the Government of Manitoba,” Pyle said. “It is a natural expansion of EIC aviation services.”

Under the contract, Keewatin Air will deliver services with a fleet of five planes, expected to be a combination of jet and turbo propeller aircraft. The planes have to be acquired and outfitted with medical interiors, according to EIC.

The aircraft are expected to be phased into service starting March 2024.

In 2019, EIC was hired through a competitive process to fly to justice officials to northern Manitoba for the circuit court. The five-year, $21 million contract was expected to save taxpayers about $6.5 million.

However, the province was forced to cancel hearings across the North in February, owing to undependable flight services and a shortage of pilots.

The new medevac contract with EIC contains penalties to incentivize the company to maintain a workforce capable of delivering critical-care transport services around the clock, Teitsma said.

“Failure to provide the service will result in very punitive damages against them and the recovery for us of some of the money that we might use to otherwise transport that patient,” he said.

“This provides the accountability to say that patients need to be transported when they need to be transported and there’s service standards that we’re going to meet.”

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Manitoba Liberal Leader Dougald Lamont said the government should not have privatized air ambulance services, arguing the public sector provides a stronger level of service with a higher standard of care.

“We have to be there no matter what, and it’s clear from Keewatin’s record with justice (officials), they weren’t there no matter what,” Lamont said.

The St. Boniface MLA said the new agreement is about “locking in privatization and trying to make it impossible for any future government to make any change” ahead of the general election.

“Some of this, it seems to lock in guaranteed income for people who are, quite frankly, politically connected to the PCs, and all at a time when they, by dismantling the public service, put people at risk,” he said.

danielle.dasilva@freepress.mb.ca