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Affidavit
of
BernieSimpsonSwornAugust31,2010
Bankruptcy
No.BKO1-094004
INTHECOURTOF
QUEEN’S
BENCHOFALBERTAIN
THEMATTER
OFTHEBANKRUPTCYOFNET
WORCHEALTH
INC.Action
No.1001-06509
INTHECOURTOFQUEEN’SBENCHOFALBERTA
JUDICIALDISTRICT
OFCALGARYALBERTA
HEALTH
SERVICES
Plaintiff
-
and
-
NETWORC
HEALTH
INC.DefendantAFFIDAVITOFBERNIE
W.
SIMPSON(SwornAugust
31,
2010)
1.
I,
BERNIE
W.
SIMPSON,
of
the
City
of
Calgary,
in
the
Provinceof
Alberta,
MAKEOATH
AND
SAY
THAT:
2.I
am
the
Chief
OperatingOfficerofNetworcHealth
Inc.,
carrying
onbusiness
as
HealthResourceCentre
(“HRC”),
and
as
such
havepersonalknowledge
of
thematters
herein
deposed
to,
exceptwherestated
to
be
based
on
information,
in
which
case
I
believe
thesame
to
betrue.
3.I
make
this
Affidavit
in
response
to
any
applications
by
AlbertaHealth
Services
(“AilS”)
in
theseproceedingswhichhave
notbeen
fullydisposed
of,
and
in
support
of
an
applicationby
HR.C
for
anOrder:
(a)
declaringthatthere
has
been
goodand
sufficient
serviceand
noticeof
this
application
and
thetime
for
service
ofthis
application
and
materials
in
support
thereof
beand
is
hereby
abridged,
ifnecessary,
so
that
this
application
is
properly
returnable
on
September
2,
2010
and
any
further
service
of
this
application
uponany
interestedparty
is
herebydispensed
with;
(b)
setting
a
hearing
date
and
litigationscheduleforhearing
of
HRC’
s
application
for
the
relief
claimed
below;
(c)
recognizing
and
declaring
thespecial
relationship
between
AHS
andHRC
requiringcollaboration,
mutual
respect
and
trust
and
a
duty
todeal
with
each
other
in
good
faith,
pursuant
tothe
Agreementfor
the
Provisionof
Orthopedic
Surgical
Servicesbetween
Calgary
HealthRegion
(“CHR”)
and
HRCdated
December
20,2006,
as
amended(the
“Surgical
ServicesAgreement”);
(d)
recognizing
and
declaringthat
at
least
since
the
commencement
ofthese
proceedings,
AHShas
breached
the
Surgical
Services
Agreement
(including,
withoutlimitation,
sections4.6(c)
and
20.1)
byrefusing
or
neglecting
to:
(i)
negotiate
in
good
faith
with
HRC
thetermsof
amendment
of
theSurgical
ServicesAgreementassociated
with
CHR’snotification
to
HRCthat
it
desired
HRC
to
increase
its
capacity
to
provide
3,500inpatientstay
proceduresannuallythereunder
(“requested
expansion
of
capacity”);
and(ii)
utilize
all
reasonable
efforts
to
resolvethedispute
between
AHS
and
HRC
regardingthe
SurgicalServices
Agreementpromptly
andin
a
professional
and
amicablemanner
by
goodfaithnegotiations;
(e)
recognizing
and
declaringthat
AHS
furtherbreached
theSurgical
Services
Agreement
(including,
without
limitation,
section
20.1
thereof)
by
commencing
Court
of
Queen’s
Bench
of
AlbertaAction
No.
1001-06509againstHRC
and
by
filingapplicationagainst
HRC
on
July
6,
2010
to
lift
thegeneral
stay
to
allowAHSto
terminate
theSurgicalServices
Agreement;
(f)
directing
AHS
to
promptlyenter
intoand
conduct
good
faithnegotiations
with
HRC,
in
the
presence
of
the
InterimReceiver,regarding:
(i)
theterms
of
amendmentof
theSurgicalServices
Agreement
associated
with
CHR’s
requestedexpansionof
capacity;
and(ii)all
disputes
between
HRC
andAHSwhich
touch
upon
thevalidity,
construction,meaning,
performance
or
effect
of
the
Surgical
Services
Agreement
orthe
rightsorliabilities
of
the
parties
or
any
matter
arisingout
of,orin
connection
with
theSurgicalServices
Agreement;(collectively,
the
“DirectedNegotiations”)
(g)
directing
theInterim
Receiver
to
report
to
this
Honourable
Court
by
November
1,
2010
regarding
the
results
of
the
DirectedNegotiations;
(h)
cost
of
this
application
on
a
solicitor/client
basis
including
reasonable
disbursements;
and
(i)
such
further
and
other
relief
as
HRC
may
seek
andthis
Honourable
Courtdeems
just.
Introduction
andSummary
4.
One
of
the
most
serioussocial
challengesof
our
time
is
finding
a
way
to
provide
sustainable,affordable
andtimely,
qualityhealth
care
for
our
agingpopulation.
Tosuccessfullyaddress
thischallenge,
historically
the
Albertagovernmentrecognized
the
need
to
utilizethe
resources,creativity
and
efficiencies
ofprivateenterprise
to
privatelydeliver
publicly-funded,
qualityhealth
care.
5.
HRC
conceived,developed
and,
in
collaboration
with
CHR,
implemented
its
main
business
of
privatedelivery
to
the
public
of
publicly-fundedorthopaedic
surgical
services.In
substance
it
provides
a
privately-operatedsurgical
facility,
including
nurses
andother
staff,
forhip,
knee
and
anide
replacements
and
otherorthopaedic
surgicalprocedures.
Its
services
are
available
to
any
patientreferred
by
hisor
herfamilydoctor
to
any
orthopaedic
surgeon
who
chooses
to
performthenecessarysurgery
atHRC’
s
privately-operated
surgicalfacility.Just
as
the
patient
does
not
pay
for
the
surgeon,
he
orshedoes
not
payforthe
hospital
orsurgical
facility.Bothare
funded
bythe
Albertagovernment.
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