The group that rescued a Masterton medical surgery has quashed rumours about its management collapse. Compass Health chief executive Cathy O'Malley yesterday confirmed that the company Wairarapa Medical Limited, which was trading as Chapel Street Family Doctors, had gone into liquidation. Ms O'Malley said it was signalled last week that the companywas likely to go into liquidation, before the Wairarapa Primary Health Organisation bought its assets. She could not comment as to what had caused the collapse. Wairarapa PHO is now overseeing management of the clinic and professional services firm Deloitte is handling the liquidation of the former operators. Although the business side of the clinic had certainly changed, she stressed it was "business as usual" for its service delivery, with all 6050 patients and 28 staff members remaining on the books. Former director David Nixon is to stay on as a GP. "We worked hard through last week and the intention is to secure an ongoing business structure, with the PHO continuing to run it until an alternative option emerges," she said. "Patients have absolutely no reason to be worried." She quashed rumours circulating in the town that the liquidation was a result of the new development of the clinic building. The development had been done by the building's landlord and not Wairarapa Medical Limited. She said although it was the first time it had happened in Wairarapa, it was "not unusual" for a PHO to step in and take over the running of a practice. "Waikato (PHO) for example, owns about six or seven." There had been times when PHOs had taken over practices when doctors became sick or had to leave, however it was "extremely unusual" for a practice to go into liquidation. "In spite of this happening in the background, the PHO wants it operated on a sustainable, long-term basis." The PHO board will shortly begin consultation to see what "opportunities for input" there were in Masterton.
