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Hospital laboratory due diligence process suspect

“hospital laboratory Due diligence process suspect”

“The due diligence process adopted by the Otago and Southland District Health Boards over their proposal to privatise their hospital laboratories is very suspect,” said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today. Undertaking a due diligence process is one of the pre-conditions of privatisation.

“The person (an accountant) they have engaged to undertake the due diligence exercise was also used by the DHBs in the evaluation of the bids that led to the DHBs’ decision to recommend privatisation in the first place."

“This is further evidence of the fact that the DHBs’ are falling well short on standards of fiscal responsibility over the running of an around $250 million hospital laboratory service. They should be ensuring a much more independent due diligence process. It reinforces our conviction that the DHBs have a pre-determination towards privatisation and that they are determined to ensure that their processes achieve this outcome."

“This fiscal irresponsibility would be fine if they were playing a game of monopoly. But it is taxpayers’ dollars and a critical core public hospital service that are being placed at serious risk."

“The DHBs and their chief executives have gone out of their way to prevent the engagement of their staff with clinical and operational expertise in the running of a hospital laboratory and the sloppy due diligence process is the latest example of this,” concluded Mr Powell.

Ian Powell


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