EDMONTON - Alberta Premier Danielle Smith is distancing herself from a significant lab testing issue involving the former private provider DynaLife. During a session in the legislature, Smith stated that the problems began before her administration and emphasized her swift actions to address them upon taking office.

Her remarks followed a report from the auditor general, which revealed that approximately $109 million in public funds was wasted due to the government's attempt to privatize lab services in 2022. Smith noted, "We knew that there was a problem right after the election. We’re very pleased that we were able to identify the issues, we were able to ensure that we acted quickly, and we were also able to ensure that patients got the services they needed."

Opposition NDP Leader Naheed Nenshi criticized Smith, urging her to apologize and take responsibility for the contract. He highlighted that the failed implementation not only wasted taxpayer money but also jeopardized the health of Albertans. In response, Smith asserted that she took responsibility after the election when she and her newly appointed health minister recognized the mistake and reverted all testing back to the public system. She claimed that since then, there have been no complaints regarding the system's performance.

Smith remarked, "The members opposite should be happy — government funded, government run — this is exactly what they’ve been asking for in health care."

The DynaLife contract was primarily managed by former United Conservative Premier Jason Kenney's government. Smith assumed office four months after the contract was signed, but DynaLife's operations began months later. The auditor general's report indicated that shortly after DynaLife began its services, it became evident that the company could not meet the required standards, leading to increased wait times and concerning reports of testing errors.

DynaLife sought additional funding from the province, which was denied. Following the 2023 spring election, Smith's government terminated the contract and bought out the company. The auditor general's findings also noted that prior to the contract's signing, there were warnings from bureaucrats that the anticipated savings of $102 million from privatization were unlikely to materialize.

Smith and Nenshi engaged in a debate regarding the auditor general's report, which stated that Alberta Health Services (AHS) and the health department had withheld or partially redacted thousands of documents during the investigation. Nenshi questioned Smith about the lack of cooperation with the auditor general, asking, "Can the premier explain today why her government did not co-operate with the auditor general in the preparation of this report, and what measures she is personally taking to ensure more transparency in the future?"

Smith countered that any suggestion of non-cooperation was incorrect. She expressed concern over the destruction of notebooks requested from a former AHS executive, stating, "I think AHS does have a lot to answer for with its internal practices."

Nenshi accused Smith of deflecting responsibility, referencing her previous comments about AHS. A spokesperson for AHS stated that the organization has new leadership and is now focused on its reduced mandate of providing hospital services rather than managing health care across the province.