4 May 2008
News Release
Healthscope Appeal In $560 Million Labtests Case Begins
Healthscope’s appeal to overturn a High Court ruling invalidating its eight-year contract to provide community pathology
services to Auckland gets underway in the Court of Appeal in Wellington tomorrow (Monday May 5).
In April 2007, Healthscope Limited lodged the appeal seeking to have the decision overturned and the $560 million
Labtests contract reinstated citing ‘serious errors’ in the High Court judgment.
Healthscope Managing Director, Bruce Dixon said that in the context of the Auckland, Counties-Manukau and Waitemata
District Health Boards awarding this major commercial contract, Healthscope does not believe there was any unfairness or
prejudice against the incumbent or any advantage to Healthscope owned Labtests.
“We were selected to provide Auckland’s community pathology services based on our significant international experience
and commitment to invest in a world-class service that would be more responsive, transparent and accountable to the
region it serves.”
Mr Dixon said Healthscope remained strongly committed to the contract and had invested over $20 million in the
infrastructure required to meet its obligations under that contract.
He said the High Court decision also had significant implications for DHBs and other public bodies involved in tendering
for services that would be addressed during the 8-day hearing in the Court of Appeal.
Interim arrangements for Auckland's pathology services were put in place by the three Auckland DHBs following the High
Court decision. Dixon said the appeal was vital for certainty around the awarding of the contract.
Healthscope is now New Zealand’s second largest private pathology provider following its successful acquisition in
December of New Zealand Diagnostics Group Limited (NZDG).
The Groups’ 11 Southern Community Laboratories around the country have long-term contracts to provide community and
hospital pathology to the Otago-Southland, Canterbury, Hawke’s Bay and Lakes District Health Boards. Healthscope also
runs Northland Pathology Laboratory Limited providing community pathology services to the Northland region.
Appeal Details:
The Appeal is set down for 8 days in the Court of Appeal in Wellington.
Sitting dates are:
Monday May 5 – Thursday May 8
Monday May 12 – Thursday May 15
Counsel for Labtests:
Lead Counsel, Mr Gerard Curry
Junior Counsel, Mr Sherridan Cook - Russell McVeagh
ENDS
About Healthscope:
Healthscope wwwhealthscope.com.au, headquartered in Melbourne, was formed in 1985 and listed on the Australian Stock
Exchange in 1994. It is Australia’s second largest private hospital operator. Healthscope’s pathology business was
originally established in 1936. It has grown to become Australia’s third largest pathology provider. The company has
market leading community pathology operations in Malaysia and Singapore. Healthscope has a market capitalisation of AUD
$1.4 billion with annual revenue of AUD $1.5 billion. Its global operations employ 18,000 staff.