The Auditor General’s investigation into Alberta’s community laboratory services contract with DynaLIFE has found serious lapses in governance, procurement and financial oversight, which contributed to major disruptions in lab services and undue cost to taxpayers. According to the report, between 2013 and 2023 non-value-add expenditures totalled approximately $125 million, representing costs tied to procurements that were abandoned, cancelled or failed to deliver promised savings. These costs include $77 million related to the community lab outsourcing process initiated in 2019, $13 million connected to Northern Alberta outsourcing efforts earlier in the decade, and $35 million tied to a cancelled central hub laboratory plan.
The report highlights that the contract, signed in May 2022 for $4.8 billion with DynaLIFE, began in December 2022 but was terminated eight months later at the owner’s request. The Auditor noted that the governing entities did not complete a proper business case, did not fully assess risk, and proceeded despite internal acknowledgement that cost-savings were likely unachievable. Furthermore, essential operational transition milestones—such as the readiness of the lab information system and transfer of pension responsibilities—were not met, leading to increased wait times, diagnostic errors and service instability.
Beyond the operational failures, the review also points to structural problems: unclear decision-making authority, minimal documentation of key discussions among the ministry, the health board and executives, and a culture where staff reportedly felt discouraged from voicing concerns. The Auditor issued two principal recommendations: that the health-services departments ensure robust procurement analysis and documentation before major public expenditures, and that decision-making records be maintained clearly, including rationale and those responsible. The report warns that until governance and oversight frameworks are restored, Alberta taxpayers may continue to bear the cost of failed initiatives.
