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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Staffing Shortage Revealed During Site Visits to Medical Laboratories in New Zealand

Mar 23, 2009 | Laboratory News, Laboratory Pathology

Pathology and laboratory testing services are contracted by district health boards

Dateline: Christchurch, New Zealand-After two weeks of pathology meetings and lab site visits in Australia and New Zealand, your Dark Daily editor has gained new insights about pathology and laboratory medicine in these two English-speaking countries. One notable point is that, despite the fact that both countries have universal health coverage, their pathology and clinical laboratories are under significant financial stress.

This comes from a combination of factors. Their growing (and aging) populations are utilizing laboratory tests at increased volumes. At the same time, each government health system is using a variety of laboratory contracting practices to control spending on lab testing-thus steadily squeezing down the overall reimbursement paid to laboratories. Medical training programs in both countries are failing to graduate adequate numbers of pathologists and laboratory scientists. This is particularly true in New Zealand, where some rural regions are understaffed with adequate numbers of pathologists.

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