Report blames DHBs for poor transition to Labtests

File photo / Richard Robinson

A review into last year's change of medical testing provider in the Auckland region has revealed major failings in the way the region's District Health Boards (DHBs) carried out the transition.

Labtests took over the contract for the testing of blood and other samples for the Auckland, Waitemata and Counties-Manukau DHBs in August last year after a long legal battle with the incumbent provider, Diagnostic MedLab (DML).

Labtests encountered many problems during the transition process which resulted in 10 per cent of the contract being returned to DML.

A review into the transition process released today said the transition failed because of a lack of oversight and understanding from Auckland's DHBs.

The review authored by Waikato University, Associate Professor, Jens Mueller and Waikato DHB chairman Graeme Milne said this lack of oversight meant the contract with Labtests meant they lacked accountability.

The contract instead relied on Labtests' "good faith" and did not require them to be accredited until one year after start-up.

"Provider contracts can no longer be based on 'expected good faith' behaviour of any party but must include effective and enforceable provisions," the report said.

The DHBs also showed a lack of understanding about the complexity of the transition and were motivated instead by "short to mid-term financial" gain and lacked a long-term focus.

The DHBs also failed to take into account "strong clinician" backing to the outgoing provider DML, the report said.

The report did, however, note that laboratory performance had improved since the transition and was "described by some as better than before" and DHBs had reportedly made a "multi-million" dollar saving.

- NZPA