Alberta's failed attempt to privatize lab services was an expensive and unnecessary lesson for the government, critics say, as the price tag becomes increasingly clear. Numbers in Alberta's recent budget show the cost to buy out the Dynalife operations was $31.5M and the government says assumed liabilities are pegged at another $65.5M.
Last year, Alberta Health Services (AHS) expanded its contract with Dynalife to include community lab services in Calgary and many other parts of the province that weren't already handled by the company. The government decided to transfer all of the private provider's staff and operations in the province to Alberta Precision Laboratories, which is owned by AHS. "It's the public picking up the pieces for the failed privatization project," said Chris Gallaway, executive director of Friends of Medicare. "It didn't work. It made the whole lab system work less efficiently.