Massive lab contract backs NDP into privatization corner

A looming deadline for a $3-billion contract for medical lab services in the Edmonton area is pushing the NDP into a corner when it comes to public versus private health care in Alberta.

"It is a huge file that they need to get on top of really early on," says Elisabeth Ballermann with the Health Sciences Association of Alberta, whichrepresents 1,200employees athospitals and private medical laboratories across Edmonton.

Last fall, the province named an Australian-based company as the preferred provider oflab services in the Edmonton zone.

• Australia's Sonic Healthcare nets $3B contract for Edmonton labs

Sonic Healthcareis pegged totake over allservices provided by publicly funded labs inhospitalsoperated by Alberta Health Services and Covenant Health, as well as services provided by the private companyDynaLife.

According to a statement issued by AHSinApril,Sonic Healthcare was chosen because of its broad international experience and expertise and was"considered the best fit with AHS culture and values."

DynaLifeappealed the decision, forcingAHSto appoint a panel toreview whether the 15-yearcontract had been awarded fairly.

Alberta Health ServicesCEOVickieKaminskiis reviewing the recommendations of the appeal panel, according to spokesman KerryWilliamson.

The current contract withDynaLifeexpires in 2016.

HSAA has been lobbyingsuccessive health ministers to back away from increasing theprivatization of lab services to no avail,Ballermannsaid.

"If I had my dreamlist come true, it would be that the minister of health would say this is a critical public service, rather than putting it out to a for-profit operation," she said.

Alberta's new health minister, Sarah Hoffman, saidthe decision on what happens next withthe contract isup to Alberta Health Services, though she is being regularly updated.

"We need to make sure we're taking careful consideration of these decisions in the days ahead to make sure we can provide stability of course, and to try to offer publicly funded health care whenever possible," Hoffman said.

Ballermann is urging Hoffmanto step in.

"We do know that previous ministers haven't been shy about reaching into the system to say this will and won't happen."

Hoffman saidshe can't comment on whether the tenderingprocess can be reversed or stopped at this late stage.

"With the procurement process there are legalities that need to be considered,"she said.