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Home / New Zealand

More medicos join lab legal action

Errol Kiong
15 Oct, 2006 10:13 AM2 mins to read

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A high-powered group of medical professionals will today join legal action over the awarding of Auckland's three laboratory testing contracts to a new provider.

The Medical Protection Society - which represents the Medical Association, several GPs, specialists and primary health organisations - wants to present its case during a judicial
review into the awarding of the contract to Labtests.

In July, the region's three health boards said they would dump existing laboratory Diagnostic Medlab in favour of Labtests from next July, reducing costs by more than $15 million annually.

The society said it was not consulted properly over the impacts of the decision and was concerned about a potential loss of quality.

It was also worried the contract's content would result in GPs having to choose which patients to test in order to keep costs to a minimum.

Society members are seeking an "intervention", which enables affected parties to air their views in a legal dispute they are not directly involved in. The application is being heard at the Judges Chambers at the Auckland High Court today.

It is understood Labtests and the Auckland District Health Board oppose the group's application to speak at the judicial review set to start on November 20.

The move to award the contracts to Labtests had sparked opposition from patients, medical professionals and health unions, culminating in protests and a petition.

The health boards say the eight-year, $560 million-plus contract will save them more than $15 million a year compared with the present contract.

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