B.C. Health Coalition Urges Province to Cancel Contract with U.S. Owner of LifeLabs Amid Labour Dispute

A major public health advocacy group is calling on the B.C. government to cancel its contract with LifeLabs, the province’s largest provider of outpatient laboratory testing, following its recent acquisition by U.S. healthcare giant Quest Diagnostics.

In an open letter to Premier David Eby, the B.C. Health Coalition urged the province to act on Eby's recent directive for government bodies to review their ties with American firms amid escalating Canada-U.S. trade tensions. The coalition, representing more than 800,000 members, says B.C. should take immediate steps to fully integrate lab services into the public system.

“There is no economic justification to allow a U.S. corporation to provide outpatient diagnostic services in the province,” said Paul Finch, president of the B.C. General Employees’ Union (BCGEU), which represents LifeLabs workers currently on strike.

Quest Diagnostics acquired LifeLabs last year in a $1.35-billion deal. Since then, concerns have grown over service quality, working conditions, and privatization in healthcare. Over the past eight weeks, 1,200 LifeLabs employees have staged rotating job action, temporarily closing clinics and delaying services across the province.

On Wednesday, union members and coalition supporters rallied outside the B.C. Legislature, calling on the government to take action.

Public Support and Polling

A poll commissioned by the BCGEU suggests 74 per cent of British Columbians oppose allowing American companies to run health services in the province.

The coalition argues that bringing lab services into the public system would reduce wait times, lower costs, and ensure more stable and accountable care.

Government Response

In a statement to CBC News, the Ministry of Health acknowledged the concerns but said cancelling the contract would be disruptive and costly.

“Terminating the contract with LifeLabs would cause significant delays in lab testing and put patients at risk,” the ministry said. “It would also cost hundreds of millions of dollars and divert resources from other frontline health services.”

The province noted that while LifeLabs is now owned by Quest, it remains a Canadian-incorporated company and is contractually bound to uphold quality and accessibility standards.

LifeLabs currently conducts about 42 million outpatient lab tests annually in B.C., accounting for more than two-thirds of all such services in the province.

The current contract is set to expire in March 2031, and the government says it will ensure LifeLabs meets all performance benchmarks while continuing to assess the long-term future of diagnostic services in the public system.