"We can't allow this sort of conduct to happen," she said in an exclusive interview to CBC News.
"It's entirely inappropriate."
Allaudin Merali was fired as chief financial officer with AHS after a CBC News investigation revealed he charged almost $350,000 to taxpayers for lavish dinners, bottles of wine and repairs to his luxury car while he was with Capital Health between January 2005 and August 2008.
Sheila Weatherill, Merali's boss at the time who signed off on his expenses, resigned as an AHS board member shortly after.
Redford called the expense scandal disappointing.
"I am pleased to see that the right decision was taken with respect to terminating the employee and that the board member chose to leave," she said.
"My view is that if those two things hadn't happened, we as government would have stepped in and insured that the same result was delivered."
Redford spoke with CBC News from her business trip at the London Olympics.