Laboratory contract unresolved

20th March 2007

Laboratory contract unresolved

The three regional health boards (Waitemata District Health Board, Auckland District Health Board and Counties-Manukau District Health Board) say they are extremely disappointed in the court's ruling but respect the judge's decision and will follow a prudent path to ensure services continue from 1 July.

Justice Asher has rejected the complainant's claims except on two issues: Dr Bierre's conflict of interest and a requirement to consult. As a result, the contract has been set aside.

Lead CEO for the community laboratory project Garry Smith says the three regional DHBs believe they managed the situation regarding Dr Bierre appropriately on the information available at the time but respect the fact the judge has ruled otherwise.

In his ruling the judge stated that the three DHBs acted in good faith but that Dr Bierre should not have participated in the process.

"It is important to note that the judge held that the ARDHBs acted in good faith and without bias, and that the court rejected DML's claims that the ARDHBs acted irrationally and unreasonably.

"The DHBs will be reviewing the implications of the decision and the options open to them over the next several days," he says.

"The focus in the first instance will be to map out a pathway to ensure there is a continuity of community laboratory service in place for people in the wider Auckland region from 1 July.

"The benefit we do have is the option of two potential providers while we work through a new process. Both companies are very capable providers, and the court did not accept the argument that the Labtests contract would produce a reduction in quality.

"However the DHBs also need to consider the bigger picture as this decision has implications for the way in which health boards contract services generally.

"This is the first time that the Public Health and Disability Act has been tested in court against the normal commercial practice of tendering for services."

ENDS

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