Province puts Tories’ 10-year, $211-M air-ambulance deal under microscope

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This article was published 28/11/2023 (689 days ago), so information in it may no longer be current.

A 10-year, $211-million air-ambulance deal with Keewatin Air signed by the former Progressive Conservative government during its final months in office is under review.

It’s too soon to say if the new NDP government will seek changes to the multimillion-dollar contract inked by the Tories in July, Health Minister Uzoma Asagwara told the Free Press Tuesday.

“We’re still reviewing all of the decisions that were made in health care by the previous government,” Asagwara said. “It’s not something that can happen very quickly or overnight; it’s taking us time.”

“I am currently reviewing those particular details, and the details surrounding it, and we’ll have more to say on that after that is completed.”

Keewatin Air was awarded the massive air ambulance contract following a competitive tendering process that was launched in May 2022. The private, for-profit airline is a subsidiary of Exchange Income Corp., which has its headquarters in downtown Winnipeg.

However, the province refused to release the contract’s value at the time, claiming such disclosure would undermine its concurrent search for helicopter air-ambulance services.

The total value of the contract was quietly published in late October, coming in at more than $211.3 million, according to procurement documents. The contract includes an option to extend the agreement for three consecutive one-year terms.

Asagwara declined to discuss specifics of the contract Tuesday owing to the ongoing review.

“We are very committed to making sure that the partnerships and the agreements that we have with service providers put Manitobans first, and prioritize Manitobans having access to quality health-care services to support them having the best possible health-care outcomes,” the minister said.

The deal — which was not announced by the government and was made public in a release issued by EIC — sparked accusations of political favouritism because of the firm’s ties to the PC Party of Manitoba.

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

While in opposition, Asagwara accused the PCs of “giving profits of privatization to their friends.” The Union Station MLA had also raised concerns about diminished patient safety and quality of care as a result of privatization of air ambulances.

The PC government denied all accusations of favouritism, stating proposals were evaluated by a multi-departmental team of staffers. A third-party monitor concluded the competition was fair.

Asagwara would not say if their past concerns over patient safety and service quality have since been addressed.

However, the health outcomes of Manitobans is the top priority and the best interests of Manitobans will be put first, the minister said.

“The providers of these services are committed to making sure that Manitobans get the care that they need, and my priority is making sure that we have strong relationships with our service providers to ensure that Manitobans are receiving the care that they deserve to receive,” Asagwara said.

EIC president Carmele Peter said the company could not comment on its contract with the province. However, its subsidiaries are leaders in medevac care in Canada and have decades of experience, Peter said in a statement.

“As a Manitoba based company, we are very proud, through Keewatin, to be the successful bidder for the fixed wing medevac contract and look forward to providing essential medevac services to Manitoba for the next 10 years,” Peter said.

The first flights under its contract with the province are anticipated to be flown in early 2024, according to EIC’s last quarterly update, with “results evident in the second half” of the year, the report states. As of Sept. 30, three out of the five planes required to deliver on the contract had been purchased.

EIC also reported record high revenue and a five per cent increase to dividends.

Meantime, the government has not yet awarded a contract for rotary wing (helicopter) air-ambulance services. The province signed a two-year extension of its contract with STARS last spring.

Asagwara declined to say if the procurement process has been paused and wouldn’t rule out a return to a publicly delivered air-ambulance program.

“We’re doing our due diligence to ensure that the decisions we make on this issue and others are ones that put people first,” Asagwara said. “The details of what that will look like will be public once the decisions are made.”

Manitoba Health Coalition director Thomas Linner said the NDP government should take the opportunity to “re-examine and reverse” the trend of contracting air-ambulance services to the private sector.

A publicly delivered program ensures the province has control over training and standards and ownership over major assets, he said.

“We really need to pull back from an agenda of cuts and privatization and move more services back into the public hands,” Linner said.

The coalition advocates for publicly delivered health care and is governed by a board that includes health-care labour leaders. Linner is also the spouse of Advanced Education Minister Renee Cable.

“Whenever the option is there, our belief is, particularly on something as important as emergency services, that those services should be brought in house,” Linner said.

danielle.dasilva@freepress.mb.ca