Summary
Examination Overview
In late 2019, Alberta Health Services (AHS) began the process to outsource community laboratory services for the provincial healthcare system. This led to a $4.8 billion contract signed with DynaLIFE Dx (DynaLIFE) in May 2022, with service delivery scheduled to begin in December 2022. Eight months later, in August 2023, AHS terminated the agreement at the request of DynaLIFE’s owners.
Given the significance of public funding involved and numerous inquiries from Albertans, we initiated an examination of procurement processes—including initiation, monitoring, and termination—related to this contract with DynaLIFE. This examination was conducted under the authority of the Auditor General Act.
The focus of this examination is on AHS’s processes for awarding and managing the contract with DynaLIFE—from the initial decision to outsource in 2019 to the contract’s early termination in 2023. Given the history of significant changes to the delivery model for community laboratory services, we also examined non-value-added costs that did not contribute to improved service delivery, dating back to 2013.
Note to reader: Our findings are based on the organizational structures that were in place at the time of our work.