Alberta lab services report calls for more public oversight

EDMONTON – Alberta Health Minister Sarah Hoffman says her government will take immediate action to respond to a report released Tuesday afternoon that calls for more public oversight of diagnostic laboratory services performed in the province.

Tuesday’s report released by the Health Quality Council of Alberta (HQCA), calls for a “single public sector platform for the delivery of laboratory services through an integrated provincial plan” and in particular, to take swift action to address the urgent and growing need for more diagnostic lab services in the Edmonton Zone and northern Alberta.

“Our government is moving to public oversight of lab services – as recommended by the report – and the committee we are striking will provide us with advice about how services are delivered,” Hoffman said in a news release.

In August, Hoffman ordered Alberta Health Services (AHS) to stop the expansion of private delivery of lab services in Edmonton and northern Alberta and called for a province-wide review after saying she didn’t see evidence it would be in the best interest of Albertans.

READ MORE: Alberta health minister stops expansion of private lab services

According to Hoffman, private companies would have increased their share of lab services to 30 per cent if the process had continued.

Currenty, Alberta uses Dynalife Diagnostic Laboratory Services for its lab serives. In October 2015, AHS extended its contract with the provider for one year to run through March 2017 in order to ensure continuity of lab services across the province. The contract extension was on the same terms as the previous agreement, which was worth just over $130 million per year.

READ MORE: AHS extends lab services contract with Dynalife

In October 2014, the Progressive Conservative government announced it had entered into negotiations with Australian company Sonic Healthcare to provide lab services in Edmonton and northern Alberta.

Dynalife appealed the decision. It won the appeal after a panel determined AHS breached its duty of procedural fairness in the Request for Proposal process.

“This report shows planning under the former government did not consider the full range of options for delivering lab services, but it also outlines how we can strengthen our current system,” Hoffman said.

“If private sector companies are interested in being partners on the potential delivery of some services, they will need to demonstrate that there is a benefit to Albertans to do so, through providing more efficient or effective service,” Hoffman added. “That’s the same standard we have for our private sector partners across government.”

The report also calls for more clarity on how much capital funding lab services need, a clear management structure with a senior level Steering Committee led by the Deputy Minister of Alberta Heath, with representation from AHS, the HQCA and the ministries of health, infrastructure, and advanced education.

“The province is well positioned to lead the way in the provision of sustainable, high quality laboratory services,” Dr. Verna Yiu, interim president and CEO of AHS, said. “Our recommendations will enable a plan for renewed laboratory services to move forward as quickly as possible to address the immediate needs in Edmonton, as well as the needs of all Albertans in the future.”

“The role of our laboratories in keeping Albertans healthy and safe cannot be understated,” Hoffman said. “Today’s announcement is an important and positive step forward for high quality lab services delivery in Alberta. We look forward to working with the government and our research partners on a plan to improve these vital services across the province.”