In a letter obtained by the Otago Daily Times, Health Minister Simeon Brown said Health New Zealand was working on a New Zealand pathology development service plan, which would assess the resourcing and service needs for both patients and clinicians.
"In time, that work will inform service delivery models, funding and contract models for all services."
"This means it’s probably high time for the private providers to say goodbye.
"It also means the new Dunedin hospital absolutely needs pathology to be part of this integration."
Apex union chief organiser Dr Deborah Powell said such a review was "long overdue" and needed to examine whether the present model, which relied heavily on privatisation, was actually fit for purpose, because private firms had as much responsibility to their shareholders as clinicians.
"There’s no incentive on them to invest in workforce.
"So, I’d be interested to see in terms of the maintenance of a modern medical laboratory service, where is the incentive or the requirement on our laboratory services to do that?
"I would also like to see something about collaboration, because we are too small a country to have 60% to 70% of our laboratory services in the hands of three separate private employers, who don’t talk to each other because they’re in competition."
Yesterday, it received further criticism from the HDC after it led to the misdiagnosis of a patient’s oesophageal biopsy.
Awanui recorded a loss for the 2025 financial year of $2.16 million, compared with 2024’s bombshell loss of $15.8m.
"The review should consider what are the minimums that should be delivered by these laboratories, both in terms of the scope of testing, but also the timing and turnaround times of testing, which is absolutely critical."
Staffing was a major issue for the Southern district, Dr Powell said.
"Invercargill has been running at about 50% staffing for quite a while now. They just can’t attract people to work there, and they won’t pay what it takes."
She also hoped the review would look at the new Dunedin hospital project and its need for a pathology department, and the ownership model in general.
"We are deeply, deeply concerned about the medical laboratory industry in New Zealand.
"It’s one of those industries which is utterly essential to the delivery of a modern health system."
Awanui chief executive Anoop Singh welcomed HNZ’s review and plan for pathology services.
"As healthcare evolves, so too does our role. We’re moving from being a traditional pathology provider to a future-focused diagnostics and preventative health partner, helping to improve long-term health outcomes for New Zealanders."
Mr Singh also supported the idea of pathology being integrated into the new Dunedin hospital inpatient building.
"As any hospital laboratory service would want, it is our preference to have adequate laboratory space in the same building as patients and their treatment team who need our services, in particular in the case of urgent care.
"It is, however, the decision of Health NZ and we will work alongside them to ensure laboratory services, as part of a new hospital build, best serve our hospital and communities."
HNZ's acting national director for planning, funding and outcomes, Jason Power, said work was underway to develop a national Pathology Service Development Plan (SDP).
"This will take a longer term (10-year) view of Health New Zealand’s pathology service requirements, including patient and referrer needs, capacity need, capability requirements responding to both new medical advances and technology advances, and workforce planning," Mr Power said.
The SDP is expected to be completed in the first half of 2027.
"Work is under way on the best solution for pathology at the New Dunedin Hospital. The SDP will help to inform decisions," Mr Power added.
