Fired Alberta health care CEO claims 'malicious and bad faith allegations' by health minister

In an 11-page court document filed Thursday, the former CEO of Alberta Health Services alleges the province's health minister and AHS have crafted a narrative about her that is "completely unfounded, entirely fictitious, malicious" and replete with "bad faith allegations."

Athana Mentzelopoulos was responding to statements of defence from the provincial health agency and Health Minister Adriana LaGrange last week, which both alleged Mentzelopoulos was terminated due to her job performance. 

Mentzelopoulos had previously filed a $1.7-million wrongful dismissal lawsuit against AHS and the province in February, in which she claimed she had been fired after launching an investigation into various contracts with links to government officials.

A former chief judge from Manitoba has been appointed by the province to lead a third-party investigation into procurement. Alberta RCMP and Alberta's auditor general are also investigating.

The allegations have not been tested in court. 

In response to a request for comment on the allegations contained in Mentzelopoulos's Thursday document, a spokesperson for LaGrange wrote that the province had "filed a thorough and complete statement of defence related to the AHS matter, in which our position is very clear."

"As previously stated, we welcome the auditor general's review and the independent third-party investigation led by the Honourable Raymond E. Wyant, and we look forward to the results," the statement reads.

"Until these reviews are completed, we will not be commenting further on these matters."

AHS confidence in Mentzelopoulos

In Mentzelopoulos's "reply to statements of defence," filed March 20, the former CEO claims the statements of defence are "filled with completely unfounded, entirely fictitious, malicious and bad faith allegations about Mentzelopoulos and her performance while CEO and president of AHS" that she alleges are intended to deflect from the substance of the allegations in the statement of claim.

Thursday's document also rejects several of the allegations made in the statements of defence. In its court filing, AHS said Mentzelopoulos had displayed an "alarming lack of strategic vision" and had lost the confidence of AHS.

Mentzelopoulos said the AHS board of directors had confidence in her throughout her work at AHS and "did not lose confidence in her at any time." 

She added that the board never expressed any concerns to her about her performance, or "about her work in guiding AHS through the (often underfunded and poorly articulated) health care 'refocusing' that was being directed by Alberta Health."

She went on to reference a Dec. 2, 2024, meeting with LaGrange to discuss the ongoing changes at AHS. 

Mentzelopoulos alleges that at this meeting, LaGrange told her that she was happy with the work she had been doing and allegedly said, "I think you've done some phenomenal things in Alberta Health Services, like honestly I really do." 

Just over one month later, on Jan. 7, 2025, LaGrange was demanding the board fire Mentzelopoulos, she alleges.

'Infatuated' with investigation

LaGrange's statement of defence alleged that Mentzelopoulos became "infatuated" with her internal investigations. In rejecting that claim, Mentzelopoulos alleges that the AHS board recommended the investigation and external audit be expanded after being advised of their goals.

"Presumably the AHS board members were also 'infatuated' with the investigations as LaGrange bizarrely alleges against Mentzelopoulos in her statement of defence," the document reads.

Mentzelopoulos also alleges that three deputy ministers attended a Dec. 19, 2024, AHS board meeting, in their dual capacities as deputy ministers and also as AHS board members. At that meeting, they "heard the recommendation by other AHS board members that the investigation potentially be expanded and the matter be forwarded to the RCMP for potential criminal investigation."

On Dec. 20, 2024, AHS sent a letter to MHCare Medical, Mentzelopoulos alleges. In 2022, MHCare secured a $70-million contract for children's pain medication from Turkey amid a nationwide drug shortage.

The letter demanded "a 'full accounting and reconciliation of the prepayments AHS made to MHCare' for the $70 million that was somehow prepaid by AHS to MHCare for the still unfilled provision of children's acetaminophen." A lawyer for MHCare did not immediately respond for comment on Friday.

The next business day, on Dec. 23, 2024, Mentzelopoulos alleges she received a letter from Chris Nickerson, the assistant deputy minister of health. It "instructed Mentzelopoulos to wind up the internal investigation in CSFs and transfer all related files to Alberta Health," she claims.

She alleges it specifically directed that "AHS shall cease any due diligence underway with respect to the CSF procurements or any selected proponents unless and until further notified."

Investigation claims

Mentzelopoulos goes on to allege that she spoke to Evan Romanow, the deputy minister of mental health and addictions, on Jan. 2, 2025. 

"Romanow said the minister of mental health and addictions, Dan Williams, was 'very concerned' about the AHS internal investigations and the forensic audit," the document claims. 

Romanow said that Williams was "concerned that the investigation could lead to potential connections between various government officials and Sam Mraiche and MHCare Medical around AHS procurement issues."

At a press conference Friday morning, Alberta Premier Danielle Smith said the government would be issuing a public statement responding to Mentzelopoulos's allegations concerning Williams later in the day.

Later in the March 20 document, Mentzelopoulos responded to an allegation from LaGrange's statement of defence that Mentzelopoulos was upset over plans to reduce the size of AHS, because it would "reduce the size of the organization the plaintiff would preside over."

"Almost immediately, the plaintiff began expressing personal concern about being seen as a 'transitional' CEO if steps were taken to reform the management and structure of AHS as planned by the province," LaGrange's statement of defence reads.

In her reply to that statement, Mentzelopoulos alleges she was "specifically told in November 2023 by deputy minister of health [Andre] Tremblay and ADM [Darren] Hedley that the intention was for Mentzelopoulos to initially assume the role of president and CEO of AHS, and then be transitioned over to what became Acute Care Alberta."

"She was also assured and promised a four-year term of employment if she left her employment at the Alberta Medical Association," the document states.