Labtests CEO resigns

The head of Auckland's troubled Labtests has resigned after criticism of the company's failures.

Healthscope announced today that Ulf Lindskog would return to Australia and be replaced at Labtests by Paul Waterson, the chief operating officer of pathology for the Australian parent company.

Labtests also admitted today it had failed to fully consider clinical issues as it concentrated on setting up its main laboratory in Mt Wellington and its collection centres around Auckland.

The changing of the guard followed complaints about delays in test results and communications problems with some clinicians and doctors.

Labtests won the $560 million, eight-year contract from Diagnostic Medlabs to supply laboratatory services to Auckland, Counties-Manukau and Waitemata district health boards from Diagnostic Medlabs last year.

But the startup, which began last month, has been plagued by delays and has come under fire from Prime Minister John Key and Health Minister Tony Ryall.

The DBHs today put six of their own senior staff into the company to take over control of safety and quality assurance after Health and Disability Commissioner Ron Paterson said he held concerns for public safety.

He has received 13 complaints although none was believed to be serious.

Mr Ryall said Labtests did not respond to district health board concerns about the service and the boards had to take control.

He said the intervention team would make it clear to Labtests that they were not meeting the undertakings they had given the district health boards or the people of Auckland.

Healthscope chief medical director Dr Michael Coglin told NZPA today Ulf Lindskog did not have the right skill sets to continue after the new service was established and the decision for him to return to Australia was a "consensus" decision made by Mr Lindskog, Labtests and the district health boards.

He said Mr Lindskog had done a "marvellous job" in setting up and starting a world-class laboratory which did 30,000 tests from 10,000 patients a day.

He said since Labtests had become fully operational they had been told they needed to pay more attention to clinical issues, communications and "issues around safety and quality in the service itself".

"Ulf is not a pathologist, he is not a scientist, he does not have a clinical background of any kind."

He said Labtests had failed to fully meet some of the basic expectations of the district health boards.

"We haven't done a good job in flushing all of that out and gearing up to meet those expectations."

However, he said the new laboratory at Mt Wellington was "absolutely world class" although there was still room for some improvement.

He said the company understood and accepted the criticism and apologised to people disappointed at and affected by Labtest failures.

He said Healthscope was not in the "blame game".

Auckland District Health Board chairman Pat Snedden said there were indications the public might be at risk over inefficiencies.

Mr Key said Health Minister Tony Ryall had made it clear to Auckland's district health boards, and therefore Labtests, that the situation was not acceptable.

"The people of Auckland rely on this service, this is a $500 million contract - they have had a couple of years to get themselves organised,'' Mr Key told NewstalkZB today.

"While I don't think any of the specific issues are so serious that they can't be fixed, now is the time for Labtests to actually stand up and deliver a proper product to the people of Auckland."

Mr Key said he was confident Labtests could get on top of the issues.

- NZPA with Stuff.co.nz