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Labtests 'lied' to DHBs: DHB chairman

NZPA
Last updated 06:40 04/11/2009

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Auckland's new medical laboratory provider Labtests "lied" to district health boards (DHBs) about its safety systems, doctors angry at issues with the service have been told at a meeting.

"They led us to believe they had a quality and safety system in place from the outset," Counties Manukau DHB chairman Gregor Coster said.

"It proved not to be the case. Frankly they lied to us."

Prof Coster apologised to the GPs for Labtests' continuing underperformance, but added that the service had improved, the New Zealand Herald reported.

Doctors at the meeting said problems included misdiagnosis, slow turn-around times for results, unusual results and difficulty speaking with a pathologist.

Labtests was not invited to last night's meeting and later said it "steadfastly refutes Mr Coster's allegations".

"At all times the DHBs had full and detailed oversight of Labtests' operations."

Labtests took over the contract for the testing of blood and other samples for the Auckland, Waitemata and Counties-Manukau DHBs in August.

Labtests won the eight-year $560 million contact after a legal battle with incumbent Diagnostic MedLab (DML) but had since faced criticism, including from doctors, over its performance.

Last month, the DHBs took over the quality control of the laboratory testing and said Diagnostic Medlab would resume about 10 percent of services for four years.

About 60 doctors attended last night's meeting and a resolution of no confidence in Labtests was passed with 59 votes in favour and one against.

Organiser Carmel Built said a further 97 proxy votes included 80 of no confidence, 13 expressing confidence and four of limited confidence.

The invitation to the meeting asked those in favour of a no confidence motion to come along, reported Radio New Zealand.

An independent report into Labtests' workforce capability said the company appeared to be excluding the input and leadership of its medical director, pathologist Richard Lloydd.

The report's author Ian Beer described staffing in Labtests collection centres and lab as "light", but said it was coping by bringing in locums or exporting histology slides to sister lab, Southern Community Laboratories in the South Island.

He also noted the lack of experienced staff working as technicians, scientists and phlebotomists as well as some "cumbersome" processes putting pressure on the lab.

Dr Beer said he was satisfied the lab would meet New Zealand standards in March 2010 and was impressed by the company's facilities.

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11 comments
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James   #11   10:15 am Nov 04 2009

Maybe this is a good example of why a commerical model (profit/loss) is not correct for health care, do you want your doctor competing with other doctors to see who can do the job the cheapest?

B Brown   #10   09:36 am Nov 04 2009

"Dr Beer said he was satisifed the lab would meet the NZ standards in March 2010."

Lets hope Dr Beer and/or his immediate family aren't misdiagnosed between now and then! Sack this idiot of a man, along with the DHB's.

Perhaps those affected need to follow the example of the USA - lawsuit comes to mind!

Appalled   #9   09:20 am Nov 04 2009

And the damage is pretty well irreversible now that DML have all but dismantled their operation in Auckland, since they lost the contract they had no other option. The DHB has stuffed this up so royally it's not funny - particularly not funny in fact, since it's only a matter of time before this costs someone their life.

Mark   #8   08:54 am Nov 04 2009

I agree with post #1 - the only reason someone would take the enormous risk taken here for a less than 3% saving is either unbelievable stupidity, or a generous backhander. I say investigate the board members responsible! If it turns out there was no corruption, sack them for incompetence. If it turns out there was, prosecute! And prosecute them on the basis of the critical service that they have compromised, and the lives that compromise has damaged.

Tom   #7   08:41 am Nov 04 2009

Just wait for it, any investigation/report will show the proper process was followed. However process doesn't measure quality, typical govt dept mentality, as long as the process was followed then everything is squeaky clean, doesn't matter if sewage is oozing out of the seams. In the private sector, companies go broke for these poor decisions.

Mark   #6   08:34 am Nov 04 2009

This is what happens when you put accoutants in charge. Doesn't matter if it's the health service or the education service or whatever. Even though they understand the saying "you get what you pay for" they'll still push and push for the cheapest option, and then congratulate themselves afterwards for providing crap service to their "clients".

Often the congratulations take the form of tasty performance packages.

RF   #5   08:30 am Nov 04 2009

Time to take a deeper look for what happened during supplier selection time. How could something so important be glanced over. Check under the covers for pecuniary gains, possibly. The Health system has wreaked of this activity for years.

Byron   #4   08:08 am Nov 04 2009

Most people following this sorry saga will be absolutely amazed at the magnitude of how badly the DHB got it wrong. Thought processes along these lines perhaps? "Lets just get rid a quality system that works very well, accept a verbal assurance from an overseas company that they can deliver a similar but cheaper system (despite no facilities in place), and not bother to question where the savings might be coming from (?quality of work, understaffing), Anywhere else in the developed world and heads would roll. It's time for the entire DHB board(s) to be sacked. You can bet the amount taken to sort out the mess even to this stage has exceeded these supposed 'savings'.

JimBo   #3   07:44 am Nov 04 2009

Why don't the AK DHB just admit they stuffed up big time, eat humble pie and go back to the system that worked! This must be costing millions to sort out!

J   #2   07:38 am Nov 04 2009

Cheapest bidder won, what do people expect!? Considering the huge role that lab tests/pathogy has in the diagnostic proces I'm surprised the DHBs don't allocate more money into the service. Consumers will always lose when there is a bidding war for who can offer the cheapest service.


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