An official with a troubled private health-care provider confirmed a new multimillion-dollar facility was leased under the impression a surgical contract with Alberta Health Services was increasing.
The Health Resource Centre, a private facility contracted by AHS to perform hip, knee and ankle replacements at the former Grace Hospital, has been the subject of legal wrangling surrounding bankruptcy proceedings.
Networc Health, which owns the HRC, entered into a 10-year agreement with Cambrian Group of Companies to lease a new medical building at Veterans Place NW in November 2009.
Frank King, a director with Networc, said the new facility was sought on the basis that AHS would be increasing the number of surgeries contracted.
“Of course we have copies of all our contracts,” said King, who was unable to provide Metro with any copies.
Cambrian representative Serena Shane said the facility was originally constructed as an office space, then altered to suit the needs of the HRC.
“Networc Health approached us back in 2008 and asked if we would be willing to modify the building so that it could be used for surgical facilities,” said Shane.
“We wouldn’t have made those changes just on a whim. That cost roughly $6.5 million in changes.”
Some of these changes included widening elevators, hallways and staircases and changing the heating and air conditioning system.
Shane said the space is now open to other suitors.
“It’s available for rent. With us being able to terminate Networc’s lease, we can now look to mitigate the damages and try and find a new tenant.”
Cambrian has no plans to alter the building and will rent it out as a surgical facility, Shane said.
Repeated calls to AHS for comment on the surgical contracts went unanswered by press time.