The crisis in the healthcare system continues.

Health care crisis continues: Alberta Health Services staff transfers and layoffs
425 employees to be moved to new critical care agency, chief information officer fired

Jennifer Lee · CBC News · Published February 27, 2025 at 11:57 a.m. EST | Last updated: 2 hours ago

A woman speaks to the media at a podium as another woman looks on.
Alberta Health Minister Adriana LaGrange is seen here with Premier Daniel Smith. She was questioned Wednesday about the firing of the chief information officer of Alberta Health Services (AHS) and other senior officials. She confirmed the transfer of 425 AHS employees and acknowledged that several positions have been eliminated. (Jason Franson/CBC News)

Another senior official at Alberta Health Services (AHS) has been fired and hundreds of employees are being moved to the province’s new critical care agency. The moves come as the government grapples with a controversy over procurement and contracting processes and is overhauling the health system.

On Tuesday, 425 Alberta Health Services (AHS) employees were notified that their positions will be transferred to the Alberta Critical Care Agency effective April 1.

An internal memo signed by AHS interim president and CEO Andre Tremblay and obtained by CBC News indicates that employees will be transferred from various teams, including surgical care, planning and operations, patient safety and some work related to contracts and oversight of private surgical facilities.

In addition, CBC News has confirmed that Penny Ray, Alberta Health Services’ chief information officer (CIO), has been fired.

Ray led the implementation of the centralized clinical information system (Connect Care) and was recognized as one of Canada’s top female leaders in digital health in 2018. He served in that role — leading the health agency’s information technology division — for more than a decade, and previously served as senior vice president at the health agency.

Alberta cabinet minister resigns over concerns about procurement processes
Former AHS CEO’s lawsuit alleges he was pressured to sign private surgery contracts

Health Minister Adriana LaGrange was questioned by NDP Deputy Leader Rakshi Pancholi about the firing of the chief information officer and “other senior officials” during a question-and-answer session in the provincial legislature on Wednesday.

LaGrange confirmed the transfer of 425 AHS employees, acknowledging that several positions have been eliminated.

“We have always said that as we restructure the system, people will need to be moved to new departments. Of those positions, five have been identified as being eliminated because they are not needed by the critical care agency. These individuals are not front-line staff and are not involved in the procurement processes,” she said.

Photo: Penny Ray, AHS’s chief information officer, who served in the role for more than a decade.

AHS also issued a similar statement.

“We are unable to comment further on human resources matters,” AHS spokesman David Veitch said in an email.

The events come as the UCP government is embroiled in a controversy and the inspector general is investigating the procurement and contracting processes at the Department of Health and AHS regarding private surgical facilities, pain medications and personal protective equipment related to COVID-19.

Former AHS CEO Athena Mentzlopoulos has filed a $1.7 million wrongful dismissal lawsuit, alleging that she was pressured by the government to sign contracts with private surgical facilities. The claims in the lawsuit have not yet been heard in court.

The provincial government removed the AHS board in late January, three weeks after Mentzlopoulos was fired.

And for weeks, the government has faced calls for Health Minister Adriana LaGrange to step down.

Former AHS director warns of private surgery prices

Dr. Braden Manns, former interim deputy director of the AHS, said the recent staffing changes appear to be another attempt by the government to consolidate control over the health system.

“It’s clear that one of the motivations for these actions is to bring the health system closer to government and departments — to bring information closer together, to bring decision-making capacity closer together, to control the flow of information and to reduce transparency,” he said.

Manns, a professor of medicine and health economics at the University of Calgary, noted that the transfer of hundreds of AHS employees to the Alberta Critical Care Agency was expected.

Similar transfers have already been made to Primary Care Alberta and Recovery Alberta, two of four new agencies created through the government’s restructuring process.

When asked about the implications of losing an experienced leader like the CIO, Manns said there are still some good managers left, but it’s clear the provincial government is looking for a change in leadership, which is creating instability.

“The health system is a complex entity, and with these transitions, it’s best to keep the most experienced people in their roles so that the transition is as smooth as possible,” he said. “Who would have thought that getting into health system management and leadership would become such a blood sport?”

Alberta’s Office of the Inspector General is reviewing procurement and contracting processes at the health agency

Cabinet minister resigns over concerns about procurement processes

Transferring departments
An internal AHS memo provides a long list of departments affected by the transition.

Including those at the Alberta Critical Care Agency