Lack Of Transparency Exposed By Medlab Decision

Heather Roy
Tuesday, 20 March 2007
Press Releases - Health

All contracts for health services must be transparent and properly consulted on, and today's judicial review decision which set aside the contract for laboratory testing services in Auckland, citing a lack of transparency and insufficient consultation, should act as a warning to other District Health Boards and the Ministry of Health, says ACT Health Spokesman Heather Roy.

"District Health Boards in Auckland took an expensive gamble by giving the contract to a company with no track record, no laboratory and no staff - a company which now admits they are behind on recruiting heads of department, and in late February had only recruited eight pathologists to fill 18 positions", Mrs Roy said.

"It's hardly surprising that the High Court found Dr Bierre had a conflict of interest - before running Labtests Auckland he was a District Health Board member, asked his opinion on laboratory services in the Auckland region.

"Meanwhile some of Diagnostic Medlab's highly skilled and experienced staff have already left New Zealand, rather than be left jobless, sacrificed over internal DHB politics. If this mess can't be fixed by July 1, Auckland won't have a laboratory testing service.

"The Minister of Health, Pete Hodgson, refused to get involved - but he is responsible for oversight, and should either make sure that all our health contracts are properly transparent or should step down and make way for a Minister who can.

"For months, I've been raising serious questions about how tenders and contracts are let in the health sector. Pete Hodgson needs to give Kiwis certainty about what we can expect for our health dollar by increasing the transparency of his Ministry, District Health Boards and health providers.

"This has been an ugly, destructive and expensive debate - and one it turns out was completely unnecessary if the District Health Boards involved, and the Minister of Health, had done their homework and their jobs properly.

"Diagnostic Medlab provided a well-respected, reliable and safe service. District Health Boards now face the possibility of having to provide compensation to a lab that's half built - or further legal action - and risk inflicting a much higher human cost on patients", Mrs Roy said.

ENDS

© Scoop Media