Athana Mentzelopoulos sues Alberta Health Services for wrongful dismissal

Former Alberta Health Services (AHS) CEO Athana Mentzelopoulos has filed a $1.7-million wrongful dismissal lawsuit against AHS and the provincial government, alleging that she was fired for investigating overpriced private surgery contracts linked to government officials.

Mentzelopoulos claims she was pressured by high-ranking officials to approve contracts she believed were inflated, including a deal with Alberta Surgical Group (ASG), an Edmonton-based private clinic. Her lawsuit alleges that ASG was overbilling by nearly $3.5 million while failing to meet its contractual obligations.

Key allegations in the lawsuit

• Overpriced Contracts: ASG charged higher rates than competitors and included unnecessary overnight stays, increasing costs.
• Government Pressure: Officials, including former Premier Danielle Smith’s chief of staff, allegedly pushed for contract extensions.
• Loss of AHS Control: Health Minister Adriana LaGrange issued a directive removing AHS’s ability to negotiate private surgery contracts.
• Conflict of Interest Concerns: Prasad Jitendra, a senior AHS procurement official, had ties to contractors, including MHCare Medical.
• Sudden Termination: Mentzelopoulos was dismissed over Zoom a day after the AHS board refused to fire her.

Government response

Premier Danielle Smith has denied any personal involvement in the alleged improprieties, stating that leadership changes at AHS were part of a broader health-care system restructuring, not an attempt to quash investigations.

• LaGrange echoed this stance, calling many of the lawsuit’s claims “clearly false” while stating that others will be reviewed through the government’s internal investigation and the auditor general’s probe.
• Marshall Smith, named in the lawsuit as a key figure in pressuring Mentzelopoulos, has dismissed the allegations as “outrageous and false,” adding that he welcomes investigations into the matter.

Ongoing investigations

• Alberta Auditor General: Launched a full review into AHS procurement practices.
• AHS Internal Review: Temporarily halting new contracts with companies under scrutiny.

Mentzelopoulos, who was dismissed less than a year into her four-year contract, insists in her lawsuit that she was terminated for refusing to ignore potential financial mismanagement and government interference. The province has yet to file a statement of defense, with 20 days to respond to the allegations in court.

As the legal battle unfolds, the case has sparked a political storm, raising questions about transparency, governance, and the true cost of private health care expansion in Alberta.

SEE ALSO
• Former Alberta human rights chief files $2.1M wrongful dismissal lawsuit
• Alberta cardiac surgeon Dr. Teresa Kieser makes human rights complaint
• Doctors calling for investigation after AHS revoked Deena Hinshaw’s job offer
• RBC Ex-CFO Nadine Ahn sues for $49M

Wrongful dismissal in Alberta

A common misconception is that the term “wrongful dismissal” means an employer’s reason for terminating a non-unionized worker was “wrong” or “illegal.”

In Alberta, a wrongful dismissal occurs when an employee doesn’t receive proper severance pay when they are fired or let go.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about wrongful dismissals on an episode of the Employment Law Show.

An experienced employment lawyer at Samfiru Tumarkin LLP can determine if you received the correct amount and help you secure the compensation you deserve if you didn’t.

SEE ALSO
• What to know about wrongful dismissals in Ontario
• Wrongful dismissal in B.C.: What employees need to know

How is severance pay calculated?

Severance for non-unionized employees in Alberta can be as much as 24 months’ pay.

The amount of compensation you are entitled to is calculated using several factors, including:

However, there are some situations where non-unionized workers in the province could be owed more than 24 months of severance pay.

To figure out how much compensation you should receive, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your employer’s severance offer is less than the calculated amount, reach out to our firm immediately.

SEE ALSO
• Severance pay for provincially regulated employees
• Rights to severance for healthcare sector staff
• Severance packages during mass layoffs

Employer pressuring you to sign by a deadline?

If you receive a severance offer from your employer, don’t sign anything until you speak with a member of our team.

The company can’t legally force you to accept it before leaving a termination meeting or even a few days after it was provided to you.

Wrongfully dismissed? We can help

At Samfiru Tumarkin LLP, we’ve helped over 50,000 clients secure fair severance packages — recovering millions of dollars for non-unionized employees across Canada.

With extensive experience representing workers in roles at small businesses and large organizations across various industries, our team provides the expertise you need to navigate your termination effectively.

We specialize in assisting non-unionized employees in Ontario, Alberta, and British Columbia — ensuring their rights are fully protected. In addition to employment law, our firm handles disability claims and personal injury cases.

Call 1-855-821-5900 today or request a consultation online.

Disclaimer: The materials provided in this article are for general informational purposes only and DO NOT constitute legal advice. For advice specific to your situation, please consult a legal representative at Samfiru Tumarkin LLP.