Labtests - DHBs step in

The Weekend Herald's front page highlighted medical concerns over Labtests' service, and increased pressure on health boards to take action. Photo / Dean Purcell

Six senior health officials will intervene at Labtests today on the instructions of Auckland's district health board heads, who have demanded the new diagnostic laboratory service fix its problems.

The appointment of DHB representatives, who will have executive authority at the laboratory service, is a big step to take.

But the health boards have much wider powers, including the ability to forcibly buy the entire operation.

Auckland DHB chairman Pat Snedden announced the appointment yesterday of the troubleshooters to handle safety and quality assurance - at Labtests' expense - after mounting concerns since the company began the transition from dumped provider Diagnostic Medlab on August 10.

The boards have subjected Labtests to intensive monitoring since last Monday, but pressure for them to take more direct action increased after the Weekend Herald catalogued the new provider's problems.

Health and Disability Commissioner Ron Paterson issued a "please explain", saying he had received 13 complaints about Labtests' services and was worried about the potential risk to public safety.

"The situation was described to me [on Wednesday] as 'very disturbing' and 'just a matter of time before something significant goes wrong'," the commissioner said.

Complaints include long waits at blood collection centres, delays in doing house-calls to take blood, blood being sent to the lab in the wrong tube, necessitating a re-test, and delays in reporting results.

Mr Snedden said the health boards were taking the matter extremely seriously and had explained to Labtests and its Australian owner Healthscope that they must begin delivering fully on the $70 million-a-year contract.

The boards had spoken directly to Healthscope chairwoman Linda Nicholls.

"We've made it very clear to her the concerns that have been put to us.

"We've laid it out in terms of the recovery of reputation and the issues that are required to be dealt with effectively to satisfy us that the contract ... is going to be delivered.

"To ensure that takes place, we have taken direct intervention."

He was confident the problems could be fixed quickly.

Some, such as doctors' access to lab staff, had been addressed.

He expected the team of six would be at Labtests for up to five weeks.

Labtests and Healthscope declined to comment last night.

But the laboratory's medical director, Dr Richard Lloydd, issued an apology in an advertisement published in newspapers yesterday and today to patients and health practitioners "who have experienced difficulties during the transition".

"I would like to assure patients and practitioners that we're committed to providing a safe and trusted service to the people of Auckland," he said.

* What else can be done?

The DHBs' contract with Labtests gives them wide powers to intervene if they can show things are wrong. They can:

- Take over any of Labtests' obligations and force the company to pay.

- Quit the contract if Labtests "ceases to provide" any material part of the service.

- Forcibly buy the company's entire community laboratory service.

- Vary the terms of the contract to comply with any directions made by the Minister of Health.