Wellington Pathology Limited, a subsidiary of Abano Healthcare Group Limited, has been advised by the Capital & Coast and Hutt Valley District Health Board’s (DHBs) that negotiations with their first choice of preferred provider for the Wellington Hutt Valley community pathology work are not as advanced as they had anticipated.

Company Announcement

10 April 2006

 

ABANO UPDATE ON WELLINGTON PATHOLOGY REQUEST FOR PROPOSAL FOR COMMUNITY PATHOLOGY WORK

 

Wellington Pathology Limited, a subsidiary of Abano Healthcare Group Limited, has been advised by the Capital & Coast and Hutt Valley District Health Board’s (DHBs) that negotiations with their first choice of preferred provider for the Wellington Hutt Valley community pathology work are not as advanced as they had anticipated.

 

The DHBs had indicated that they expected this process to be complete by the 7 April 2006, however they have now advised that negotiations will be continuing into this week.  Following significant concern from doctors in Wellington and Hutt Valley at the possibility of a change to the community laboratory providers, the DHBs have advised that there will now be further due diligence of any proposal and that it could take some weeks for a recommendation to go to the boards of the DHBs. Wellington Pathology Limited has not been advised of any further detail in regards to the new timeframe, but is committed to keeping shareholders fully informed of any further developments.

 

The Abano board continues to have serious concerns with respect to the process the DHBs have elected to follow and with respect to the possible clinical implications for the Wellington and Hutt Valley region. However, the Abano board remains committed to completing the RFP process with the combined DHBs.

 

Wellington Pathology Limited's joint bid, made with Valley Diagnostic Laboratories Limited, a subsidiary of Sonic Healthcare (New Zealand) Limited, was originally advised that it was one of two preferred bids under consideration by the DHBs  but that the second choice of preferred supplier.

 

Wellington Pathology Limited has been the provider of community pathology services to the people of Wellington for over seventy years, employing over 170 local health professionals, and is the incumbent service provider to Capital & Coast District Health Board. The laboratory has revenues of over $15 million pa and has an investment cost to Abano of $7.6 million.

 

Ends

 

For more information, please contact:

 

Alan Clarke, Managing Director, Abano Healthcare Group Limited

Tel: 09 300 1412 or 021 368-818

alan.clarke@abanohealthcare.co.nz

 

For more information on Abano Healthcare Group, please visit www.abanohealthcare.co.nz.