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EDMONTON — Alberta’s New Democrats are renewing calls for a public inquiry into what they call the CorruptCare scandal, alleging the United Conservative Party government pressured Alberta Health Services into signing inflated contracts with private surgical facilities and mishandled broader health care reforms.
In a joint statement released Thursday, NDP shadow ministers Sarah Hoffman and Sharif Haji said the province is nearing the one year anniversary of allegations that the government interfered in AHS contracting decisions, while the health care system faces mounting strain.
The statement points to emergency room deaths, calls by some Edmonton physicians for a state of emergency, and nearly one million Albertans without a family doctor. It also cites the relocation of outpatient units, burnout among health care workers, and a report from the Auditor General concluding at least $125 million was lost through the province’s attempt to privatize medical laboratory services.
The opposition also highlighted new allegations tied to a wrongful dismissal lawsuit involving former AHS chief executive Athana Mentzelopoulos, who has said she was fired after scrutinizing contracts with private surgical providers. The NDP says those allegations include an intimidation campaign connected to the legal action, reinforcing the need for a full public inquiry.
The controversy, which New Democrats have branded CorruptCare, centres on the province’s growing reliance on for profit delivery within the publicly funded system. The government has said private surgical facilities are needed to reduce wait times and expand capacity, but critics argue the approach has driven up costs while weakening public hospitals.
Documents previously reported by the Globe and Mail show some chartered surgical facilities charging significantly more for common orthopedic procedures than comparable surgeries performed within the public system. A Parkland Institute analysis has also found sharp increases in average costs at for profit surgical centres in recent years.
The roots of the issue trace back to the Alberta Surgical Initiative launched in 2019 under former premier Jason Kenney, which aimed to shift a larger share of surgeries to private clinics. The policy was later defended as a way to improve efficiency, though Kenney acknowledged it was also intended to reduce the role of unions in hospital settings.
Lab privatization has also drawn scrutiny. In late 2022, the province transferred medical testing from Alberta Precision Laboratories to DynaLife Medical Labs. The arrangement collapsed within months, leading the government to purchase the company in 2023 for $100 million under Premier Danielle Smith.
The Alberta Labour Relations Board later ordered DynaLife to honour existing collective agreements after wage and pension changes were imposed on former public sector workers.
More recently, the province has relied heavily on private nursing agencies to fill staffing gaps, a trend seen across Canada since the pandemic. Research from Queen’s University and reporting by Progress Report show Alberta Health Services spending on contract nurses rose dramatically between 2021 and 2024, with agencies supplying staff even in major urban hospitals.
The United Conservative Party has rejected claims of corruption and maintains its reforms are aimed at improving access and sustainability. The government has not committed to a public inquiry, saying reviews and audits already provide accountability.
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