Alberta Lab Services: The Push for Stability After Years of Disruption

ALBERTA — After years of turbulence—including a failed privatization attempt that cost taxpayers over $100 million—Alberta's lab services are entering a new chapter under Primary Care Alberta, and health-care workers are calling for stability and growth.

The Health Sciences Association of Alberta (HSAA) is highlighting the need for continuity as Alberta Precision Laboratories (APL) transitions to new ownership on April 1, 2026. The move is part of the province's broader health system overhaul, which replaces Alberta Health Services with four new agencies.

The Privatization That Wasn't

The call for stability comes after a costly detour. In May 2022, the province signed a $4.8 billion contract with DynaLIFE Dx to privatize community lab services. By August 2023, the deal was dead. The Auditor General's November 2025 report tallied the damage: $32 million to buy out DynaLIFE's remaining assets and liabilities, plus $77 million in sunk costs. Total non-value-added spending: over $100 million.

It was a public experiment that didn't pan out, and lab workers bore the brunt of the uncertainty.

New Deal, New Owner

On January 27, 2026, HSAA members working for APL ratified a four-year collective agreement covering October 1, 2024, to September 30, 2028. The deal includes 3% annual wage increases—retroactive for the first two years—and provides a measure of financial security as the lab system transitions.

APL, previously a wholly-owned subsidiary of AHS, will now operate under Primary Care Alberta, one of four new health delivery agencies. The province approved $958 million in unrestricted base operating funding for APL in the 2025-26 budget, along with $160.8 million in new diagnostic funding.

What Workers Want Now

HSAA's message is clear: after years of disruption—privatization plans, contract failures, and system restructuring—lab workers need consistency to do their jobs effectively. The union is advocating for investment in public lab capacity and a focus on growth, not further experiments.

The province has also signaled interest in allowing private payment for elective diagnostic services like MRIs and blood work, with physician-recommended tests remaining publicly funded. How that fits into APL's mandate under Primary Care Alberta remains to be seen.

For now, the goal is straightforward: keep the lab lights on, retain skilled staff, and rebuild trust in a system that's been tested—literally and figuratively—over the last four years.