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Auckland's health is too important to lab test - join the debate!

Facts - when the contract was awarded

  • Labtests Auckland Ltd have no laboratory, testing or collecting facilities in Auckland when the contract was signed, and have less than 12 months to set them all up.  The network Diagnostic Medlab operates in Auckland has been serving Aucklanders for years.

  • The DHBs weighted their decision 50% on price and made this the overriding consideration in awarding the contract.   A copy of the proposed evaluation criteria, as outlined in the Pathology Request for Proposal Discussion Document is below:

    Mandatory Requirement

    Meets Requirements / Weighting
    1. Demonstrated ability to provide laboratory services of good quality. Yes / No  
    2.

    Demonstrated ability to meet IANZ accreditation, or has an acceptable plan to meet IANZ accreditation within 2 years.

    Yes / No  
    3. Value for money with emphasis on price Yes / No 50%
    4. Capability and experience, ability to meet RFP requirements, proposals to maximise efficiency of the laboratory sector. Yes / No 15%
    5. Collaborative relationships and demand management. Yes / No 15%
    6. Information systems, technical, meeting agreed turn around times. Yes / No 10%
    7. Viability including assessment of sustainability of provider’s proposal. Yes / No 10%

    NB: All elements are mandatory. Having met the requirements, price is the
    overriding consideration.


  • Dr Tony Bierre is both CEO of LabTests Auckland Ltd and was, until recently, an active member of the Auckland District Health Board that jointly awarded the contract to Labtests Auckland Ltd.  He is a former employee of Diagnostic Medlab.

  • The community laboratory contract represents 90% or more of Diagnostic Medlab's revenue.  Losing this contract will lead to many redundancies. 

  • Diagnostic Medlab's laboratory staff are some of the most highly skilled health professionals in the country.  New Zealand already has a shortage of Pathologists and with an uncertain employment future, and better money overseas,  some of our best and brightest medical professionals may join the brain drain.

  • Diagnostic Medlab staff have no guarantee of employment with Labtest Auckland Ltd.  It has been estimated up to 30% of them could look offshore for future employment. 

  • Labtest New Zealand did contract to offer the DHB's a cheaper service, however this may result in reduced access and an increase in turn around times for tests.  This means you may have to drive further and wait longer for the results of your diagnostic tests.

  • 50% of the decision was based on price. Price was the tie-breaker.