News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups
Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups
Hosted by Robert Michel
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Sonic’s Diagnostic Medlab Signs New Contract with Auckland Health Boards

Oct 14, 2009 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology

Dark Daily Commentary: Treat lab testing as a commodity and risk disrupting the entire healthcare system

Once again, the pathology profession is seeing the consequences of the “penny wise-pound foolish” philosophy relentlessly pursued by government health bureaucrats. This time it involves the Auckland District Health Boards in New Zealand. Having signed a cut-rate, back room deal back in 2006 to save about NZ$15 million per year on lab testing (against an annual healthcare budget in the region of more than NZ$2.5 billion), these health officials are reaping a harvest of voluminous problems and deficiencies in the community because of problems with their new monopoly laboratory testing provider.

Many regular Dark Daily readers know that, ever since Labtests began its contract as the exclusive provider of pathology services and lab testing to the greater Auckland region late this summer, there has been chaos across the healthcare system. Labtests is a new business division of Healthscope Limited, (SYD:HSP) a public company based in Melbourne, Australia. See Dark Daily e-briefing “Long-Awaited Lab Contract Transition in New Zealand Happens Next Monday”.

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New Zealand’s Health System Walks Pathology/Lab Testing Tightrope

Mar 20, 2009 | Laboratory News, Laboratory Pathology

Government efforts to reduce funding for lab tests may boomerang in coming years

Dateline: Christchurch, New Zealand-Here in the land of kiwis and enthusiastic rugby fans, pathology and laboratory services don’t seem to get much respect from regional health districts of the New Zealand Department of Health. There are fears that too much of this type of budget cutting will undermine the quality of laboratory testing in those communities.

In at least two major metropolitan regions of New Zealand, the regional health districts are using single-source tenders (contract bidding) for pathology and laboratory testing services as a way to drive down the price they pay for laboratory testing. One consequence of these tender efforts is an immediate reduction in the number of private pathology testing providers in these cities, since just one medical laboratory is granted an exclusive, multi-year contract to provide laboratory testing services to office-based physicians across that region.

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