CALGARY -- After issuing a request for proposals from third-party companies to take over its laundry services, Alberta Health Services has selected a company for the contract.

K-Bro Linen Systems, a company that has facilities across Canada including in Edmonton and Calgary, will be assuming the remainder of AHS' laundry services province-wide.

"K-Bro Linen Systems has a proven track record of providing high-quality laundry services," said Dr. Verna Yiu, AHS president and CEO, in a statement. "AHS is looking forward to working with them to ensure the long-term sustainability of laundry service in our province."

In late 2020, AHS announced it would be outsourcing the rest of its laundry services to a third-party provider. Up until that point, other companies handled 68 per cent of the agency's laundry services.

Officials say the "millions of dollars" saved will be reinvested into "top health-care priorities."

"The former government’s opposition to contracting with a company to wash laundry would have cost taxpayers over $100 million," said Health Minister Tyler Shandro in a release. "Fortunately, that will not happen under this government."

Approximately 428 full-time, part-time and casual employees will be affected by the transition, but AHS says it is working with staff and their unions.

It adds there may be some opportunities for employment with K-Bro once the changeover occurs.