20 March 2007

High Court ruling a telling blow to DHBs credibility

The Green Party says a High Court judgement today declaring invalid the laboratory testing tender granted to Labtests by three Auckland District Health Boards, is a huge blow to the credibility and reputation of these Auckland DHBs, and to their ability to deliver health services to the people of Auckland.

"It is a damning indictment of the decision making processes of the DHB's, and their failure to follow proper consultation processes, and avoid conflict of interests," Greens Health Spokesperson Sue Kedgley says.

On judicial review, the Court found that the decision-making process was both lacking in consultation and undermined by a conflict of interest, and for these reasons the DHBs' contract with Labtests was overturned by the Court.

"How can Aucklanders have confidence in their Health Boards to act in their best interests when the impartiality and basic competence of these Boards has been found to be lacking? Laboratory services are essential to the safe and effective running of health services, and all New Zealanders should be able to trust their DHBs to deliver these to a high standard.

"It appears that the DHBs put the pursuit of short term savings ahead of proper process and as a result they may have jeopardised the safe and effective delivery of laboratory services to thousands of New Zealanders.

"The DHBs stubbornly refused to listen to thousands of Aucklanders who marched, petitioned them, and raised serious concerns about the lack of proper consultation over the awarding of the contract and about a serious conflict of interest<" Auckland-based Green MP Sue Bradford says.

"There is an urgent need to review the DHB's processes for handling conflicts of interest, and its consultation procedures, in the light of this decision," Ms Kedgley says.

Ms Kedgley said the judgement highlighted the need for a national framework for reviews of laboratory services.

"The whole process of reviewing laboratory services has been ad hoc and piecemeal. It's time for the Minister of Health to intervene and set national, transparent standards and processes that all DHB's must follow when reviewing their laboratory services," Ms Kedgley says

ENDS

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