Alberta private surgical provider denies allegations of sweetheart deals

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This article was published 07/02/2025 (302 days ago), so information in it may no longer be current.

EDMONTON – An Alberta surgical company named in allegations that government officials interfered to offer up sweetheart deals for private clinics says the claims are false.

The Alberta Surgical Group said in a statement Friday that it’s “deeply shocked and dismayed.”

“The claims being made are false and do not reflect our values, our mission, or the dedication of our team to providing exemplary surgical services efficiently and cost effectively,” it said.

It follows a report from the Globe and Mail citing a letter from the former head of Alberta Health Services, Athana Mentzelopoulos.

She alleges she was subject to pressure by various provincial officials — including Marshall Smith, then Premier Danielle Smith’s chief of staff — to sign off on contracts for privately run surgical facilities despite concerns over how much was being paid and who was benefiting.

The letter says Mentzelopoulos had concerns with “significantly increased costs” on a contract with the Alberta Surgical Group.

The province’s independent auditor general is looking into how the health ministry and Alberta Health Services approve contracts, including for chartered surgical facilities.

Auditor general Doug Wylie said Thursday that work will address concerns related to contracting and potential conflicts of interest and could extend to other organizations. 

Marshall Smith declined requests for comment.

Alberta Health Services declined to answer questions while that probe is underway. But it has said it’s halting the awarding of contracts between the parties involved.

In excerpts of the letter from Mentzelopoulos, quoted in the Globe and Mail, the former CEO alleges she was dismissed because she was looking into questionable contracts.

Alberta Health Minister Adriana LaGrange’s office has denied that claim, saying the dismissal of Mentzelopoulos as well as the AHS board were part of the province’s ongoing health-care restructuring plan.

Mentzelopoulos had been on the job for about a year and the letter says she’s preparing to sue for wrongful dismissal.

The Alberta Surgical Group says it looks forward to working with the auditor general to dispel any concerns.

“Given that this appears to be a disagreement with the former CEO over her dismissal, and the possible court actions to follow, we will not be making any further comment at this time,” the statement said.

Contracts posted publicly by Alberta Health Services show the company has secured more than $76 million in provincial funding since 2022.

The letter also raises allegations of conflict of interest surrounding an AHS staffer who had an email account with MHCare Medical. It says the medical supply company and other firms associated with its CEO, Sam Mraiche, have done $614 million in business with the province.

MHCare secured a $70-million contract with the government in 2022 to procure children’s pain medication from Turkey in the midst of a national shortage. Most of that order did not arrive, but Alberta paid the full cost.

Multiple cabinet ministers and government staff were later guests of Mraiche at Edmonton Oilers playoff hockey games.

A lawyer for MHCare said in a statement late Thursday that he couldn’t provide details into the allegations because of the auditor general’s investigation and any future legal proceedings.

“Based on what our client has learned, the claims and insinuations made against them are based on a flawed perspective, is without merit, and contrary to substantiated evidence. We are confident that, as the process unfolds, the full facts will come to light and demonstrate that our client has acted properly at all times,” said Greg Bentz.

Alberta NDP Leader Naheed Nenshi has called for the premier and health minister to resign, as well as the new head of AHS, Andre Tremblay.

He has also called for a judicial public inquiry.

The Canadian Press has not seen the letter, but Nenshi said he has seen relevant parts and called the allegations shocking.

RCMP have also said they’re reviewing a complaint related to the allegations.

This report by The Canadian Press was first published Feb. 7, 2025.