Labs contract invalid

A court has ruled that the decision to award Auckland medical testing to a new company is invalid.

District Health Boards in the Auckland region handed the contract to Labtests Ltd, stripping the role from Diagnostic Medlab.
[quote]Justice Raynor Asher upheld Diganostic Medlab’s appeal against the decision on two grounds.

Firstly, he said the DHBs failed to ensure the tendering process was fair as Auckland DHB member Dr Tony Bierre was also involved in the Labtests bid.

The court said in its judgement released this afternoon: "The boards’ failure to prevent Dr Bierre’s involvement in the boards’ attempt to reform the provision of community laboratory services meant the only pathologist involved was seeking outcomes that suited his commercial goals rather than the boards’ statutory objectives of improving and protecting public health.The boards’ failure to prevent Dr Bierre’s involvement damaged the integrity of the boards’ considerations and undermined public confidence in board processes."

Secondly, Justice Raynor said the DHBs failed to properly consult with Primary Health Organisations representing GPs in the region.[/quote]

The DHB’s have effectively been ticked off for running a dodgy tendering process and will now have to do it all over again this time with out any conflict of interest apparent or otherwise.