Alberta Health Services Minister Fred Horne announced Wednesday morning that he was terminating the Alberta Health Services Board effective immediately.
While Horne praised the board for some of the money-saving and streamlining initiatives during their tenure, the firings came about after a refusal by the board to turn down millions of dollars in executive bonuses.
“With that event, it’s clear this is not going to be a functional constructive relationship that serves patients and serves staff,” Horne said. “That’s what I care about and that’s the reason that led to the decision today.”
Horne said that the stand that AHS Board Chair Stephen Lockwood and the board took to honour contractual pay to senior executives was "out of step" with provincial priorities and the direction the province was taking with cuts in pay by front-line providers.
Alberta Health Services Minister Fred Horne announced Wednesday morning that he was terminating the Alberta Health Services Board effective immediately.
While Horne praised the board for some of the money-saving and streamlining initiatives during their tenure, the firings came about after a refusal by the board to turn down more than $3 million in bonuses.
“With that event, it’s clear this is not going to be a functional constructive relationship that serves patients and serves staff,” Horne said. “That’s what I care about and that’s the reason that led to the decision today.”
Horne said that the stand that AHS Board Chair Stephen Lockwood and the board took to honour contractual pay to senior executives was "out of step" with provincial priorities and the direction the province was taking with cuts in pay by front-line providers.
The Minister said that when the Board refused directives by the Province that there was a problem and questions got raised as to who was in charge. "Today not about attacking individuals that were on the board," said Horne, who went on to say that the issue is about how well the system is serving Albertans
Horne also acknowledged that it was troubling that a number of senior executives with AHS had offered to forgo bonuses and were not allowed.
Departing Board members will not be receiving severance packages, because they were appointed to their positions, and not AHS employees.
Opposition weighs in on terminations
Reaction to the mass-termination was swift, NDP Leader Brian Mason applauded Horne’s decision – but said the issue of bonuses for the executives should have been dealt with a long time before.
“The time for him to have spoken up was before these contracts were signed,” Mason said. “The government allowed this type of compensation and contractual obligations to be established by the AHS, and they did nothing.”
Leader of the Official Opposition and the Wildrose Party Danielle Smith said the move is a sign the super board isn’t working.
“It’s pretty clear that we need to do what we’ve been saying all along,” Smith said. “Go back to local decision making, empowering local administrators to work with local staff so they can deliver the best patient care.”
Interim administrator appointed to run AHS
Janet Davidson, former Canadian head of the Global Healthcare Centre of Excellence at KPMG, has been appointed as administrator to serve in place of the AHS board while a review takes place.
Davidson has served as a health executive for more than three decades – most recently as president and CEO of the Trillium Health Centre in Mississauga.
Before that, she worked with Alberta Health for two years as an assistant deputy minister, and as COO for the former provincial mental health board.
Horne said one of Davidson’s first responsibilities will be to review the bonus payments.
The Health Minister says Albertans will not see any changes in service expected to Albertans during the transition period.
United Nurses of Alberta asks for meeting with Horne
After the news of Horne’s actions broke, the union representing registered nurses in Alberta asked for a meeting with the minister and Davidson over possible impacts on health service delivery.
UNA President Heather Smith asked for the meeting in a letter sent to Horne Wednesday.
“We can get into questions as to whether or not the bonuses were merited, but the reality is, it was a contract I would not expected the minister to start suggesting that other contracts should be broken,” Smith said.
With files from Brenna Rose
