Labtests puts disastrous changeover behind it

Photo / Richard Robinson

Tomorrow is the first anniversary of Labtests' disastrous takeover of Auckland's community laboratory testing.

But after the first troubled months, the service is said to have settled in.

Even one of the Mt Wellington-based company's harshest critics at the outset is now satisfied.

"I can't really complain," said inner-city GP Gerald Young.

Labtests has achieved full accreditation and is mostly meeting or exceeding the performance targets set for it by Auckland's three district health boards.

"Things are a hang of a lot better than they were," said Dr Lannes Johnson, clinical director of the primary health organisation Harbour Health.

Labtests took over from the previously contracted provider Diagnostic Medlab in three stages, starting in the Counties Manukau health district on August 10, Auckland on August 24 and Waitemata on September 7.

But as required under the cost-cutting contract with the DHBs, it had fewer collection rooms than DML.

From day one, GPs and patients began complaining about long waits for patients' blood to be drawn, slow turnaround times for some results, mix-ups of results and GPs' access to Labtests pathologists for advice on results.

A fortnight after the Waitemata transition, and immediately after then-Health and Disability Commissioner Ron Paterson expressed concerns about the safety of patients, the three DHBs intervened by appointing six of their own senior staff to fix safety and quality assurance at Labtests.

The company's chief executive, Ulf Lindskog, left, to be replaced eventually by a New Zealand doctor, Craig Marshall.

In October, the DHBs re-hired Diagnostic Medlab to take back 10 per cent of the Labtests contract for at least four years. This relieved pressure on the newcomer, but also took a similar percentage of its income, which had been set at $67 million for the 2009/10 year.

Last November, Dr Young helped to organise a meeting of disgruntled GPs, who passed a vote of no-confidence in Labtests.

Many GPs were angry because under the revised contract, private specialists' patients were tested by Diagnostic Medlab and GPs were left with Labtests.

"Obviously it's settled down - because they carved off 10 per cent," said Dr Young.

Dr Johnson agreed. "Most things have improved since Craig Marshall was taken on."

Test turnaround times were good and Labtests was providing medical education for referring doctors.

But some problems remained in some patients' access to collection centres and information technology, and GPs' access to pathologists was not as good as the "Rolls-Royce service" provided by Diagnostic Medlab.

A review of the transition to Labtests will be given to Health Minister Tony Ryall next month.

Difficult birth:

* Labtests opened for business progressively from last August.

* Mix-ups of test results and other problems marred the takeover from Diagnostic Medlab (DML).

* DML later regained part of the contract for at least four years.

* Service is now generally running smoothly.

* Ministerial review of the transition is being done.