Medical lab row goes to court

A multi-million dollar row over medical laboratory services is headed for court.

Diagnostic Medlab confirmed today it is asking the High Court for a judicial review of the decision by three Auckland district health boards to dump Medlab as the area's main medical laboratory.

The three boards gave a $560 million, eight-year contract to a consortium led by Healthscope Ltd, Australia's second-largest private hospital operator.

The boards said the move could save $15 million a year.

However, Diagnostic Medlab chief executive Dr Arthur Morris said they had asked the courts to "examine some very serious matters of probity and process in respect of the decision".

"We believe a wrong decision was based on a flawed process. That is what we are asking the court to look at," he said in a statement.

"We intend to pursue every avenue available to us to have this wrong decision reviewed, because it has serious implications for our company, our staff, and, we believe, the people of Auckland.

"We are not going to stand by and let the DHBs destroy a world-class pathology practice that has served the Auckland region for 70 years."

He said 52,000 people had signed a petition calling for the DHBs to review the decision.

Those people, the people of Auckland, doctors, specialists and community health professionals were appalled at the decision and the lack of consultation, he said.

The eight-year contract was due to begin next July.

- NZPA