Ousted Alberta Health Services boss warned of private surgery prices, documents show

Athana Mentzelopoulos, the former head of Alberta Health Services, raised concerns about the potential impact of chartered surgical facilities on the provincial health-care system months before her dismissal. She filed a $1.7-million wrongful dismissal suit, alleging government pressure to approve contracts for new facilities, including a contract extension for Alberta Surgical Group (ASG) with high costs compared to other vendors.

In a draft letter addressed to Health Minister Adriana LaGrange, Mentzelopoulos highlighted the value of chartered surgical facilities in providing additional surgical capacity and improved access for scheduled surgeries. However, she also pointed out challenges such as higher costs compared to the public system and the risk of siphoning critical staff from hospitals, leading to disruptions in patient care.

Mentzelopoulos recommended that pricing for chartered facilities should not exceed internal AHS costs and funds should not be provided for services that do not occur. Following her letter, LaGrange issued a directive for the government to take over contract negotiations with chartered facilities.

Mike Parker, president of the Health Sciences Association of Alberta, supported Mentzelopoulos’ concerns, emphasizing the potential risks to public health care when private facilities prioritize profits. Health economist Stirling Bryan acknowledged the benefits of private provision in easing waitlists but cautioned against viewing it as a long-term solution for systemic healthcare issues.

Mentzelopoulos included a price comparison table in her letter, showing higher costs for hip, knee, and shoulder replacement surgeries at ASG compared to AHS. ASG’s lawyer, Rose Carter, referenced data from the Canadian Institute for Health Information to dispute the pricing differences. Premier Danielle Smith challenged Mentzelopoulos’ numbers, citing AHS data that excludes certain costs covered by the health authority.

Bryan expressed surprise at the significant cost differentials between public and private surgeries, raising concerns about the long-term implications for healthcare provision. He highlighted the vulnerability of provincial governments to fiscal constraints when engaging private contractors for health care services.

Overall, Mentzelopoulos’ warnings about the impact of chartered surgical facilities on the health-care system underscore the complexities of balancing public and private healthcare provision. As discussions continue on the role of private facilities in addressing healthcare challenges, it is crucial to consider the implications for patient care, workforce sustainability, and cost-effectiveness in the long run.