Former Alberta Health Services (AHS) CEO Athana Mentzelopoulos has filed a $1.7-million wrongful dismissal lawsuit against AHS and the provincial government, alleging that she was fired for investigating overpriced private surgery contracts linked to government officials.

Mentzelopoulos claims she was pressured by high-ranking officials to approve contracts she believed were inflated, including a deal with Alberta Surgical Group (ASG), an Edmonton-based private clinic. Her lawsuit alleges that ASG was overbilling by nearly $3.5 million while failing to meet its contractual obligations.

Key allegations in the lawsuit

• Overpriced Contracts: ASG charged higher rates than competitors and included unnecessary overnight stays, increasing costs.
• Government Pressure: Officials, including former Premier Danielle Smith’s chief of staff, allegedly pushed for contract extensions.
• Loss of AHS Control: Health Minister Adriana LaGrange issued a directive removing AHS’s ability to negotiate private surgery contracts.
• Conflict of Interest Concerns: Prasad Jitendra, a senior AHS procurement official, had ties to contractors, including MHCare Medical.
• Sudden Termination: Mentzelopoulos was dismissed over Zoom a day after the AHS board refused to fire her.

Government response

Premier Danielle Smith has denied any personal involvement in the alleged improprieties, stating that leadership changes at AHS were part of a broader health-care system restructuring, not an attempt to quash...

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