Viability Of Hospital Lab Privatisation Threatened

“The whole viability of the possible privatisation of the Nelson Marlborough public hospital laboratories is threatened by the decision of the three Auckland district health boards to end their contract for community testing with Medlab,” said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today.

Mr Powell was referring to the joint decision of the Waitemata, Auckland and Counties Manukau DHBs to not renew their contract for community (GP referral) testing with Medlab and instead award it to another Australian owned company, Health Scope. The three Auckland DHB’s hospital laboratories continue to be provided by their public hospitals.

“Auckland is the heartland of Medlab’s New Zealand operations. When you take the heartland out of a company’s business you seriously threaten the company’s viability. It also means that Medlab’s Australian owners will be reassessing their approach to New Zealand in light of this massive set-back. They have been pushed by a bigger player in the market.”

“This is also a timely warning of how important it is for district health boards not to privatise their public hospital laboratories. It would simply put them at risk of being under the control of profit-seeking international businesses,” concluded Mr Powell.
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