Victoria: Private lab talks must stop

The campaign to stop secret hospital lab privatization talks is gathering steam in Victoria, BC.

Four area NDP MLAs have joined the Hospital Employees’ Union (HEU) in calling on the minister of health to put a moratorium on any further talks between Capital Health Region CEO Tom Closson and the for-profit lab corporation MDS.

HEU, CUPE’s B.C. health sciences division, is working to uncover details of the secret deal. "We suspect MDS wants to scoop up all the common, easy-to-do tests that they can do by automated machine. Since billing is done on a per-test basis, they’ll maximize their profits, leaving hospitals to do the expensive and complex tests," says Arleta Keppler, a computer technician at the Royal Jubilee Hospital and HEU member.

"Those savings from doing tests efficiently should be going back into the health care system, not the pockets of MDS."

While lab workers face an immediate threat, the outcome of the MDS discussions will have broad repercussions. The deal could mean a loss of lab billing revenue for the Capital Health Region’s facilities, which would impact overall facility budgets. Cuts in other areas could result. As well, the talks could open a floodgate for health region CEO Tom Closson – who is an outspoken supporter of privatization.

MDS, Medical Diagnostic Services, is Canada’s largest operator of private sector laboratories. In 1994, MDS developed AutoLab, a computerized system using high-tech robotics to handle specimens and carry out testing. This $10 million subsidiary of MDS has given the company a stake in the lucrative supply and management sector of laboratory services. MDS boasts that AutoLab will substantially reduce the company’s largest cost component – labour.

MDS is also one of Canada’s biggest privatization pushers. Its venture capital fund is a key financial backer of the Calgary private hospital that would benefit greatly from Alberta Premier Ralph Klein’s plan to contract out surgery to for-profit hospitals. The multinational is also one of the largest corporate donors to Premier Klein.

Research shows little evidence to support MDS's claim that significant cost savings can be achieved from joint public-private ventures. A veil of "corporate secrecy" prevents public scrutiny and accountability. Access is barred to important records and information that would provide a complete and detailed picture of the arrangements between MDS and public health authorities or hospitals.

Equally important, there is growing concern among lab staff, pathologists, patients and consumer advocates about quality control in these P3 arrangements. Cuts to staff and an eye to shareholder returns can jeopardize service standards.