Retired judge says he can’t explain why price of Alberta’s pain meds contract rose by $7M

A retired judge investigating Alberta Health Services (AHS) contracting has found the agency renegotiated a contract for children’s medication to cost $7 million more than initially planned, and forensic accountants could not justify the increased price. The findings are part of an addendum report released Friday by retired Manitoba justice Raymond Wyant.

Alberta Health Services Contract for Children’s Medication Faces Scrutiny

Wyant’s addendum report details that AHS signed an updated five-year, $56-million contract with medical supplier MHCare in July 2023. This occurred after the province was unable to secure Health Canada approval to import all five million bottles of children’s pain medication initially agreed upon with Turkish supplier Atabay Pharmaceuticals in 2022.

The renegotiated contract was intended to cover alternative Atabay products that had already received Health Canada approval. Forensic accountants from RSM were unable to provide support for the $56-million contract value, according to Wyant’s report.

As of Oct. 31, 2025, AHS had paid $42 million to MHCare for products that had not yet been delivered, the RSM report also stated.

Wyant’s initial investigation revealed that in 2022, then-Alberta health minister Jason Copping directed AHS to purchase the children’s medication before receiving Health Canada approval. The province initially ordered approximately ten times more medication than officials deemed necessary.

When approval was limited to 1.5 million bottles, AHS employee Jitendra Prasad suggested purchasing intravenous acetaminophen solution to utilize the committed funds. Wyant’s earlier report identified Prasad as having a conflict of interest due to his ties to both AHS and MHCare.

Alberta initially received about $20 million worth of medication – 1,473,619 bottles of children’s acetaminophen and ibuprofen – with expiry dates between January and April 2026. AHS subsequently disposed of 807,000 bottles (55 per cent) at the Swan Hills hazardous waste plant, donated 44 per cent to Health Partners International Canada for overseas use, and distributed only one per cent to hospitals and pharmacies.

The Alberta government, in a statement released Friday evening, said the addendum report reaffirms the conclusions of Wyant’s earlier findings, confirming “serious procurement and contract‑management failures within AHS,” while finding no evidence of wrongdoing by elected officials, political staff, or the Alberta Public Service.

Rakhi Pancholi, deputy leader of the Opposition NDP, called for a public inquiry to uncover the full extent of the government’s involvement.

The government has accepted all of Wyant’s recommendations and is implementing them to strengthen oversight, accountability, and transparency in procurement, according to the statement. The government also expects health agencies to utilize contractual and legal tools to ensure delivery of ordered products and seek remedies when necessary.

AHS’ contracting practices are currently the subject of a wrongful dismissal lawsuit filed by former AHS CEO Athana Mentzelopoulos, who alleges she was terminated for scrutinizing multimillion-dollar contracts for children’s pain medication and private surgical facilities. These allegations have not been proven in court.

MHCare, under CEO Sam Mraiche, also received hundreds of millions of dollars from AHS for personal protective equipment during the COVID-19 pandemic. Investigations into AHS contracting practices are being conducted by Alberta’s auditor general, the RCMP, and Wyant.

RCMP officers were recently at MHCare’s Edmonton offices. A lawyer for MHCare and Mraiche stated Thursday that they have not engaged in any improper conduct.

Wyant’s initial report, released in October, identified instances of “real or perceived” conflicts of interest in purchasing the children’s medication and awarding contracts to private surgical facilities. He made 18 recommendations for improvement, including whistleblower protection and mandatory employee training on conflicts of interest. He found no evidence of wrongdoing by Premier Smith or her staff, but noted limitations to his investigative powers.

Questions have been raised regarding relationships between members of Smith’s cabinet and Mraiche and his business partners following the acceptance of NHL playoff tickets as gifts in 2024.