CALGARY- Alberta Health Services is headed for a showdown with the province over executive bonuses.
In a vote Tuesday afternoon, the AHS board decided to stand by its decision to award bonuses for the 2012-2013 fiscal year, despite a request from the province to reconsider.
Six board members voted in favour of the bonuses, with three members abstaining. Board chair Stephen Lockwood says AHS must honour its previous contractual commitments.
The vote came after Health Minister Fred Horne released a statement, in which he asks AHS not to award bonuses to its executives.
Horne says the payouts aren’t appropriate at a time when the province is exercising restraint and asking front-line staff, such as doctors and teachers, to accept a pay freeze.
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Horne called the decision to hand out bonuses “completely out of step with the times.”
The minister added, “Taxpayers expect us to safeguard limited tax dollars. And we’re going to do just that. Our government’s direction is clear – we will continue to ensure government, our agencies, boards and commissions live within their means.”
The province is also launching a review of AHS governance which will completed by the fall.
Wildrose leader Danielle Smith says Tuesday’s vote shows Health Minister Fred Horne has lost control of Alberta’s health care system.
She says he is left with two choices-either ordering AHS to rescind the bonuses or fire the board.
Alberta Health Services is an arm’s-length organization of the Health Department and oversees day-to-day care.
While the organization is separate from Alberta Health, it still reports to the minister.
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