Media Release

New Zealand Medical Labratory Workers Union

13 December 2016

Taranaki DHB Takes Unnecessary Risk Outsourcing Laboratory

The NZ Medical Laboratory Workers Union (NZMLWU) is concerned at the process being used by Taranaki DHB in its recently announced decision to outsource (contract out) laboratory services for the Hospital and Community sector in Taranaki.

NZMLWU is the union representing Medical Laboratory workers throughout NZ and is well versed in both the process and issues surrounding the contracting of medical laboratory services. “Taranaki DHB has taken the unusual step of deciding to outsource to a single laboratory provider whilst simultaneously naming a preferred provider without any prior testing of the marketplace,” says David Munro, advocate for the NZMLWU.

“In our experience, to name a preferred provider so early in the process and without at the very least seeking any expressions of interest (EOI) is unprecedented in NZ when the outsourcing is a new venture.”

“NZMLWU wants to ensure whatever arrangement is decided is robust and sustainable to avoid the risk of losing our highly skilled medical laboratory scientists and technicians to the detriment of the health sector and the patients we serve,” says Mr Munro. “Over 90% of all patients require medical laboratory testing in their diagnosis, treatment and care. To put this essential component of healthcare at risk would be foolhardy.”

This is not the first time Taranaki DHB has contracted out clinical support services. In the 1990s Taranaki DHB contracted Laboratory Services to St John of God, an arrangement that subsequently failed and required services to be brought back into the DHB, and more recently the outsourcing of radiology services proved a failure and likewise had to be taken back under Taranaki DHB ownership.

“Given TDHB’s poor track record with outsourcing we are particularly mindful to ensure the process they use is above board and stands up to such tests as the Public Finance Act,” says Mr Munro.

NZMLWU has asked for further information from TDHB regarding the basis of their decision making to date, as well as the process going forward.

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