Aotea Pathology signs three year, $75 million contract extension

Abano Healthcare Group subsidiary, Aotea Pathology, has today announced a three year, $75 million extension of the existing community pathology contract it holds with the Hutt Valley and Capital and Coast District Health Boards (DHBs).

Managing director of Abano, Mr Alan Clarke, commented: “Following a period of discussion with the DHBs, Aotea Pathology has agreed to a three year extension of the contract which will see this business continue its 78 year history of providing a professional, high quality and seamless medical service for the wider Wellington and Hutt Valley communities.”

The existing five year contract was due to expire in October 2011. The three year, $75 million extension now means this contract will expire in October 2014.

Alan Clarke continued: “This extension provides some certainty and mid-term stability for both employees and the communities who use these vital services.

“For New Zealand to be able to recruit and retain world class pathologists and laboratory staff, it is important service providers are able to provide long term employment security.

“The contract extension announced today is a step in the right direction and we hope that further discussions with the DHBs will result in further, longer term stability for this essential medical service and its specialised and highly qualified workforce.”

The community pathology contract extension also reflects the recent change in Government policy, where from 1 November 2011 onwards, private patients will no longer be charged for tests ordered by private specialists. From 1 November 2011, these will again be funded by the DHBs.