ST. ALBERT - In what St. Albert's NDP MLA Marie Renaud described as “another failed ideological experiment,” the provincial government announced last week it plans to buy out DynaLIFE Medical Labs and transfer all operations and staff back under publicly owned Alberta Precision Laboratories (APL) before the end of the year.
The announcement comes less than a year after DynaLIFE, through a contract signed by the previous UCP government, took over APL's community operations and became the sole provider of community lab services in Alberta. That decision led to significant pushback from unions, advocacy groups and the Opposition, as well as serious delays for Albertans looking to get appointments and test results.
“One of the areas that I have been hearing about most since becoming health minister is the challenge Albertans have in getting simple lab tests done, particularly in Calgary and the south region,” Health Minister Adriana LaGrange said during a news conference on Aug. 18. “Waiting weeks in some communities to book an appointment or to get test results back is just not right and it is not acceptable.”
“To ensure stability in our lab system, (Alberta Health Services) has signed a (memorandum of understanding) with the ownership of DynaLIFE, who will ensure DynaLIFE transfers all of their staff, all of their operations, and all physical locations to APL by the end of 2023,” LaGrange said.
LaGrange said the government and DynaLIFE were still negotiating how much it would cost the province to buy the company out; however, no job losses are expected, and the transition is expected to be completed in phases over the next four months. Once the two entities finish negotiating, LaGrange said the government would announce how much it needs to pay the company.
During the transition period, all Albertans with appointments for lab work will still be able to go to the DynaLIFE location where their appointment was made, LaGrange said.
In an interview, Renaud said that while she thinks the UCP's decision to buy DynaLIFE is the right choice, having a lack of dependable lab services available to Albertans leading up to the buyout was dangerous and a waste of public dollars.
“It's just a disaster right now,” she said. “I think it demonstrates their inability to use real data and information as opposed to their ideological bent (that) privatizing things will automatically make things better, which we've seen again and again doesn't happen.”
Morinville-St. Albert MLA and Service Alberta Minister Dale Nally was unavailable to comment.
Likewise, a request for an interview with DynaLIFE's CEO Jason Pincock was declined, although in an email Pincock confirmed the lab in Tudor Glen which the company opened just five months ago will continue to operate.
During the Aug. 18 announcement, LaGrange said having all lab services provided by APL moving forward will ensure quality service is available.
“APL currently does operate all of our hospital labs, they do our rural labs, they do acute care, so they're experienced,” LaGrange said.
“They have the expertise, the knowledge, (and) the ability right now to do it.”
Renaud said she thought the UCP government was trying to find a “quick fix” for the issue, and is concerned the government has no long-term plan for lab services or health care.
“I think their eyes are squarely on, ‘What can we privatize and what can we privatize quickly?’ and we're seeing again and again it's not the best decision for Albertans,” she said. “We end up on the hook paying for their mistakes.”
NDP want audit on DynaLIFE contract
On Monday the NDP published a letter to Alberta auditor general Doug Wylie, asking Wylie to undertake a “comprehensive audit” of the provincial government's contract with DynaLIFE, and how the company failed to “fulfill its obligations to provide lab services, and the cost of moving those services back into the public service through (APL).”
“All indications are that the decisions around lab services made by the government will cost Albertans dearly and we believe a great deal of trust has been broken with patients requiring — and deserving — quality lab services,” the letter reads.
The province announced at the beginning of 2022 it had contracted DynaLIFE to take over nearly all community lab services in Alberta in an effort save money, with DynaLIFE set to take over in July of last year.
Leading up to July, the government then announced the takeover was delayed until last December because significant investments still needed to be made to the company's operations.
Just a few months after DynaLIFE became the sole community lab service provider earlier this year, lobbying records showed that the government and DynaLIFE had talked about the possibility of a government buyout.
In an email, Charlotte Taillon, the health minister's senior press secretary, said moving forward the government plans to analyze contracting and procurement policies and procedures.
“The details of this agreement are still being finalized,” Taillon said.
“We will continue to keep Albertans informed and will share further details when they are made available.”
