Alberta auditor general Doug Wylie speaks in Edmonton in this October 2019 file photo. He estimates the government's failed effort to privatize community lab testing services left taxpayers on the hook for about $109 million.--CP FILE PHOTO
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Auditor General Doug Wylie’s report on the province’s failed attempt to privatize community laboratory services in 2019 was released Wednesday.
Alberta Health Services signed a $4.8-billion contract with DynaLIFE Dx in May 2022, with service delivery scheduled to begin in December. AHS terminated the agreement in August 2023 at the request of DynaLIFE’s owners.
Wylie’s report found issues across governance and oversight, financial management and procurement that contributed to disrupted services and a non-value-add expenditure of taxpayer dollars totalling $125 million between 2013 and 2023.
“Based on sworn testimony and an examination of documents and communications, our work identifies notable breakdowns in due diligence, risk assessment and financial analysis,” said Wylie. “Decisions about how public funds are spent on health care can have far-reaching consequences.”
The province bought out the company in 2023 and returned lab testing to the public system. Wylie’s report pegged the buyout cost alone at $32 million including liabilities, while $77 million could be considered sunk costs.
The Auditor General Act gave Wylie authority to compel testimony and evidence. But Wylie says his access to information was restricted while he was conducting his investigation.
“While we received a considerable amount of information, it is important and necessary to emphasize that we did not receive all the relevant information we requested and cannot be certain we had access to all pertinent information,” said Wylie.
“Documents were either not provided or were heavily redacted. While verbal explanations and alternative sources helped bridge some gaps, we cannot determine the full extent to which the absence of this information may have impacted our findings or conclusions. This constitutes a scope limitation. The nature and impact of this limitation are indeterminate, as we do not know what information was withheld or how it might have influenced our analysis.”
Wylie made several recommendations in his report, including that the Department of Surgical Health Services and the Department of Primary and Preventative Health Services ensure procurement and reporting processes are diligently followed.
— with file from The Canadian Press
