4 September 2007 News Release

Date Set For Labtests Appeal

Labtests bid to overturn a High Court Ruling invalidating its eight- year contract to provide community pathology services to Auckland will be heard by the Court of Appeal in early May 2008.

Labtests had sought a priority fixture but given the unprecedented hearing time required and the Court's busy schedule, May 2008 was the earliest date available.

In April 2007, Labtests owner, Healthscope Limited, lodged the appeal seeking to have the decision overturned and the contract reinstated citing ‘serious errors’ in the High Court judgment.

Healthscope Managing Director, Bruce Dixon, said he was pleased that a fixture had now been allocated given the importance for certainty around the awarding of the $560 million contract, and the implications of the current High Court decision for other public bodies involved in tendering for services.

“Interim arrangements for Auckland’s pathology services are only currently in place until the end of next year and while the incumbent saw no need for urgency, we are strongly of the view that dragging this process out ultimately impacts adversely on all stakeholders”.

Bruce Dixon said that the Auckland DHBs were looking for an experienced pathology company to provide a pathology service that met the current and future needs of Auckland at a cost effective price and Healthscope had been the clear winner of the tender process.

“The DHBs were forced to look for an alternative to the existing monopoly which had not been responsive or accountable to the DHBs or the people they served.

“We have a state-of the art facility ready to provide for the needs of Auckland and we remain firmly of the view that it was our proven ability to provide a world-class service at a cost effective price that won the tender,” said Mr Dixon.

The Appeal has been set down for an 8-day hearing in the Court of Appeal in Wellington from 5 May 2008 to 8 May 2008 and 12 May 2008 to 15 May 2008.

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