File can be:
was not the solution in my case as the owner was already local admin group.
The problem is to set the permissions to the correct order Citrix requires. The GUI cannot do that it reorders the permissions.
First make sure the the owner of the Tests\Citrix directory is set to the local administrator group
Open a command prompt and navigate to C:\Program Files\Citrix\HealthMon\Tests.
Run these commands:
icacls citrix /remove "NT AUTHORITY\LOCAL SERVICE"
icacls citrix /remove "BUILTIN\Administrators"
cacls citrix /G "NT AUTHORITY\LOCAL SERVICE":R
cacls citrix /E /G "BUILTIN\Administrators":F
Restart the Citrix Health Monitoring and Recovery and check the event log. Do not touch the permissions on this directory or the files within it otherwise you have to rerun the commands above.