According to available information, the Royal Canadian Mounted Police (RCMP) have initiated an investigation into procurement practices at Alberta Health Services (AHS), focusing on contracts awarded to private surgical clinics and medical supply companies. This probe follows allegations made by former AHS CEO Athana Mentzelopoulos, who was dismissed on January 8, 2025. Mentzelopoulos claims her termination was linked to her internal investigation into these procurement practices, including over $600 million awarded to MHCare Medical.
In her wrongful dismissal lawsuit, Mentzelopoulos alleges that Health Minister Adriana LaGrange issued directives preventing AHS from negotiating private surgery contracts and mandated rates exceeding those of comparable agreements. She also raises concerns about a private clinic in Edmonton, Alberta Surgical Group (ASG), which, despite underperformance, was reportedly on track to overbill AHS by approximately $3.5 million.
Additionally, the lawsuit highlights potential conflicts of interest involving Jitendra Prasad, particularly his influence on AHS contracts related to MHCare. Prasad was reportedly referred to as "his guy" by Marshall Smith, then chief of staff to Premier Danielle Smith, and was allegedly positioned at Alberta Health to ensure the government could "get contracting right."
Both Health Minister LaGrange and Premier Smith dispute these claims. The RCMP investigation is ongoing, and no further details have been released at this time.
