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Home / New Zealand

Health boards to focus on keeping up services

By Martin Johnston
Reporter·
22 Mar, 2007 05:00 PM3 mins to read

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Ross Keenan says the boards are taking stock after the decision

Ross Keenan says the boards are taking stock after the decision

KEY POINTS:

Wayne Brown defended himself yesterday as he and other Auckland health chiefs met to plan how to rescue the region's community laboratory services after their $560 million contract was ruled unlawful.

He asserted he had no reason to resign from his post as chairman of the Auckland District Health Board, for which he was paid $87,688 in the last financial year.

He said he was a success at running Crown agencies and agreed with Ross Keenan, the deputy chairman of Auckland's three health boards, that he and the three chairs should not resign over the High Court's scathing rejection of the boards' contract with Labtests Auckland.

"Ross is right," Mr Brown said, adding that he could say no more.

"I was warned not to speak to the press by the lawyers."

Mr Brown, Mr Keenan, Waitemata chairwoman Kay McKelvie, Counties Manukau chairman Pat Snedden and board officials met at a Ministry of Health office in Penrose to chart their course for community laboratory services from July 1, after Justice Raynor Asher's verdict on Tuesday declaring their contract with Labtests invalid.

National Party health spokesman Tony Ryall has called for the heads of all three boards and Mr Keenan, but Mr Keenan has said none should resign.

The Government has begun distancing itself from Mr Brown, whose board received particular criticism in the verdict, but in the House yesterday it maintained its position that its confidence in the three boards hinged on their ability to stitch up a new laboratory deal.

Labtests was set to replace Diagnostic Medlab as the region's provider of community testing of blood and other human samples - saving the boards more than $15 million a year compared with the current contract - but Diagnostic sought a judicial review of the new, eight-year deal, worth more than $560 million.

Justice Asher faulted the health boards for not excluding Auckland board member Dr Tony Bierre from the process over his conflicting interests as a businessman-pathologist; for accepting the Labtests bid with him a part of it; and for not consulting Primary Health Organisations.

Mr Keenan said yesterday's meeting was a stocktake of the judgment before two separate meetings today with Diagnostic and Labtests about services from July 1. There was no discussion of whether the boards would appeal against the verdict - ensuring services was the top priority.

The boards had an open mind on the shape of the deal covering the interim period from July 1, said Mr Keenan, and he has previously suggested the length of the interim period - before a more permanent deal is struck - is unknown: "Interim may be six, 12, 18 months; we don't know until we talk to the parties."

Both companies have said they want to be involved.

Mr Keenan said co-operation between the two might involve things such as sharing test collection centres.

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