Is public hospital pathology worth preserving?

Public hospital pathology departments are perceived to be inefficient, in terms of cost-effectiveness of performing tests, when compared to the private sector. Is there a place for public hospital pathology to be contracted out to the private sector? This paper critically examines the worth of public hospital laboratories in terms of the service provided and their role in teaching and research. It concludes that there is a place for maintaining the public hospital pathology system. However, the public hospital laboratories need to become much more financially accountable. Steps have to be taken to reduce costs. Budgets should reflect the volume of tests performed with due allowance for teaching and research. The departments also have to develop an academic excellence that sets them apart from the private sector.