Healthscope Purchases NZ Diagnostics
Healthscope, based in Australia, announced that the organization has acquired 100 percent of the shares of the New Zealand Diagnostics Group. The purchase positions Healthscope as the second largest provider of pathology services across the country. The news was published in the New Zealand Herald.
The acquisition is one component of Healthscope’s efforts to maintain a presence in the healthcare market in Auckland. Labtests Auckland (a subsidiary of Healthscope) completed contracts with Auckland county district health boards for a pathology contract extending over an eight year period, amounting to $560 million.
Labtests introduced a plan to cut the number of collection centers available in the areas serving the contract by almost half. This plan was met with an outcry from healthcare providers in the area. The New Zealand High Court invalidated the contract between Labtests and the counties. Labtests is appealing the decision; the case will be heard by the Court of Appeal in May 2008.
Healthscope has been in the news of late in their battle with Primary Health Care over the purchase of Symbion Health’s Diagnostics business, which has been detailed on HospitalBuyer.
December 27, 2007 Related topics: Mergers & Acquisitions