Fast Forward Calgary

Province mismanages health funds, says report


Published October 28, 2010 by Carol Harrington in News


The province does not have a grip on its health spending and finances, says Alberta’s watchdog, who ultimately blames a rocky transition from several regional health boards to one provincial superboard.

"We found material errors in (Alberta Health Service’s) financial reporting system, unachieved processing efficiencies and significant strain on its finance staff," auditor general Merwan Saher says in his 246-page fall report.

The report pointed out the centralized health board didn’t sign a contract before construction started on a $54-million Edmonton geriatric mental health facility, and almost $1 billion in expenses was either misclassified or omitted in financial records — problems that were eventually rectified.

"Without proper contractual arrangements, the AHS capital plan is jeopardized, unfilled expectations may lead to difficult and costly resolution, and there is greater risk of cost escalation that would be borne by taxpayers," says the report.

David Eggen, executive director of Friends of Medicare, says the “mismanagement” of public funds is “inexcusable.”

“The scale and impact of this will become apparent in the coming weeks and months,” he says. “Albertans will not forgive this gross mismanagement of their public health system. This is where you draw the line.”
Premier Ed Stelmach defended the health board. “It has nothing to do with whether we have one board or not,” he told reporters. “The system is adapting to the ever-increasing needs.”