A new report has been released on the Alberta Government's attempt to privatize community lab services through DynaLife. (Photo: Pattison Media)

By Canadian Press

Provincial Politics

Alberta’s auditor says taxpayers lost $109M in lab testing debacle

Nov 19, 2025 | 3:24 PM

Alberta’s auditor general estimates the government’s failed effort to privatize community lab testing services left taxpayers on the hook for about $109 million.

Auditor General Doug Wylie says in a new report that politicians at the time pushed the deal forward, despite warnings from bureaucrats that the expected savings wouldn’t materialize.

He says there were major failures with oversight, records management and financial analysis in the deal with private lab tester DynaLife.

In the spring of 2022, the Alberta government signed a 15-year contract with DynaLife to fully privatize lab testing services in the province.

But as wait lists for testing stretched into weeks and months, the province terminated the contract, bought out the company and returned lab testing to the public system.

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Wylie says his investigation was somewhat hindered because some documents he requested were withheld.

Sarah Hoffman, Alberta’s New Democrat Shadow Minister for Hospital and Surgical Health Facilities; and Sharif Haji, Shadow Minister for Primary and Preventative Health Services, issued the following joint statement in response to the Auditor General’s report:

“The Auditor General’s report on the UCP’s DynaLife privatization scandal confirms that the UCP wasted more than $125 million, delivered worse outcomes for patients, and then worked overtime to prevent this report from ever seeing the light of day.

“The report shows the government pushed ahead with attempted privatization even after they were told that it wouldn’t save money for taxpayers; and it was Albertans who paid the price for the UCP’s political experiment with public health care. Wait times grew, errors increased, and patients suffered.

“To make matters worse, the government made it almost impossible for the Auditor General to fully do his job. Key records were never kept, critical information was withheld, and thousands of documents were redacted. We still don’t know the full extent of the damage because the UCP government ignored the basic rules that protect the public.

“Danielle Smith and the UCP’s desire to implement American-style two-tier health care meant their political agenda came before patient outcomes. And when it failed, they tried to cover it up and avoid any accountability. That is not okay.

“Albertans deserve accountability, and a government that puts patient care ahead of political experiments with public health care.”

This report by The Canadian Press was first published Nov. 19, 2025.

(With files from rdnewsNOW)