A health care contract went under the microscope at the Saskatchewan Legislature on Thursday with questions raised about LifeLabs.
During Question Period the NDP grilled the government on their $60 million lab contract awarded to the US based company after the government pledging to review and reduce American procurement.
The NDP noted that when the contract was originally awarded in 2017 LifeLabs was owned by Canadian pension fund OMERS. Last year it was taken over by Quest Diagnostics out of New Jersey. The NDP also pointed to the company being a donor to the Republican Party and also to the Sask Party, with more than $30,000 in donations to the Sask. Party since 2016.
Opposition Ethics and Democracy Critic Meara Conway referred to this as a “trifecta of Sask Party failures.”
She pointed to it as an example of “privatizing aspects of our beloved public healthcare system,” and of “quietly awarding a contract to a big Sask Party donor without a competitive process. And third, it’s another example of an American firm — which we’ve learned, incidentally, donates to the Republican Party — providing services here in Saskatchewan, and we see the Sask Party in there doubling down on that contract despite the fact that they, you know, prop up Donald Trump.”
Conway noted the contract itself expired on April 1, but is still in operation today.
It “seems like business as usual, it would seem that the contract was quietly extended without a competitive process,” said Conway.
She adds that what was disappointing is “you don’t hear a commitment from them that this is a problem. You don’t hear a commitment that they’re going to look seriously at ensuring that we’re awarding these kinds of lucrative contracts to local companies. And that would be the bare minimum that I would expect from them. And I don’t think I heard that in there.”
Conway was taken to task by the Speaker in the Legislature during Question Period for some of her comments, in which she asked government “when did it become okay to dole out government contracts to big Sask Party donors?”
Conway defended her actions, saying she thought people were questioning “about why is Scott Moe being so meek and weak on this question of Donald Trump and the tariffs.”
“And there’s been a lot of speculation, is it because of this fringe MAGA-component within his own supportive base? I think a lot of people have those questions because they’re at a loss about why he hasn’t been stronger on this issue from day one. But in terms of what I said in there, they were the facts. And if they don’t like those facts, then they shouldn’t do it. But I really tried to stick to the facts in there, and I think the facts speak for themselves.”
In speaking to reporters Health Minister Jeremy Cockrill said the contract was held by Saskatchewan Health Authority. He said the contract with LifeLabs has not been renewed, but has been extended by a year while the province continues discussions with the supplier and while they review what procurement may look like in this space.
The indication from Cockrill is the government is reviewing all procurement, but wanted to ensure continuity of services for patients.
“You know, we’re not going to just pull the plug on lab services overnight. People in Regina and Saskatoon depend on those services. Our system depends on those services in those cities. So, again, we’re going to continue discussions with LifeLabs and also reviewing what procurement will look like in this space.”
Cockrill adds that “we have to be very careful about this discussion.”
“I appreciate, you know, we’re all feeling frustrated with what President Trump is doing.
We all feel that, right? It’s frustrating to watch. It’s frustrating to watch him question our country’s sovereignty at times. But at the end of the day, you know, so many sectors of our economy are integrated….
I think we have to be very careful about, you know, especially when it comes to delivering services in the healthcare system for Saskatchewan people and Saskatchewan families. You know, we can’t just pull the plug overnight and stop a service just because it’s a company that might have U.S. operations or an American company.”
As for the process when the contract extension expires in a year’s time, Cockrill said there are three one-year extension options, and they were in the first year of that. If the province decide not to continue the extension of the contract, “we would go to market with an RFP and that would be an open competition,” Cockrill said.
As for concerns from Conway about the government being “meek and weak” on contracts with US companies, Cockrill reiterated the need to be careful about these discussions.
“A great example, I think, is anaesthetic. Almost all of our anaesthetic that we use in this province comes from the United States. Should we stop doing surgeries tomorrow? No, I don’t think so. Saskatchewan people expect and deserve for these services to continue, so we have to be really careful about how we respond to it.”
Cockrill reiterated the province will review procurement, especially as it relates to the United States, but “we can’t just cut services off for Saskatchewan people. I don’t think that’s reasonable.”
As for the accusations that Sask Party donations played a role in the contract, Cockrill replied “absolutely not.”
“I think that’s a really disappointing accusation. You know, I don’t track who donates to which party.” Cockrill also said he was told LifeLabs donates to the NDP party in British Columbia.
“At the end of the day, this is a contract held by the Saskatchewan Health Authority. You know, any political donations of any kind don’t have any bearing on this contract.”
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