Alberta Health Services is exploring legal options to recover nearly $49 million in outstanding payments from a troubled medication import contract that has left the province's health system without expected supplies of Turkish-made pain relief drugs.
The health authority signed a deal with Edmonton-based importer MHCare to purchase Parol, a Turkish acetaminophen product, after Health Canada approved the importation of 750,000 bottles for behind-the-counter pharmacy sales across Alberta in early 2023.
However, the majority of the contracted medication never arrived in Alberta, leaving AHS with a significant financial exposure and patients without access to the promised alternative pain management option.
"The approximate amount of $49 million remains outstanding under the agreement between AHS and MHCare," the health authority stated this week. "AHS is reviewing legal remedies to obtain reimbursement."
Backup Plan Abandoned
AHS had initially attempted to salvage the contract by pivoting to intravenous acetaminophen from the same Turkish manufacturer. Work on new contracts and regulatory approvals began during summer 2023, but the health authority has now abandoned that alternative approach.
The failed medication import represents a significant setback for Alberta's efforts to diversify its pharmaceutical supply chains and provide patients with more affordable treatment options.
Premier Danielle Smith acknowledged the situation during an unrelated news conference Wednesday but directed questions to AHS leadership.
"MHCare remains of the view that it will be able to fulfill the terms of its contract with AHS in full, as has always been its intention," the company stated in response to the developments.
The dispute highlights ongoing challenges in Alberta's healthcare procurement system as the province seeks to balance cost savings with reliable medication supplies for patients across the province.
The legal review comes as AHS faces continued pressure to manage healthcare costs while ensuring adequate pharmaceutical supplies for Alberta's growing population.
Information from the Edmonton Journal was used in this report. Original reporting by Jennifer Blackwood, Edmonton Journal.
