Doctors are frustrated about the state of Auckland's new laboratory testing service and are urging the Government to take action.

On Monday, the $70 million a year contract for community laboratory services changed from Medlab to new provider Labtests.

The New Zealand Medical Association says members and their patients are used to a very high standard of laboratory service, but are encountering problems as the new arrangements are progressively introduced throughout the three district health boards in the Auckland region.

Chairman Dr Peter Foley says the level of service is unacceptable and a number of patients have not received appropriate care.

?It is a concern that at least one major Auckland PHO has been so concerned that it is committing extra funding to source the needed care from elsewhere. This is another unplanned cost to our fragile health system.?

Dr Foley says while the association acknowledges a transition process is underway, it had pointed out to the Government that it carries substantial risk and that services would be jeopardised. He says the association was assured that planning and contractual arrangements would be adequate to ensure quality and continuity of the service. But Dr Foley says the problems which have emerged have caused a serious loss of confidence in the service.

?We and our members are not convinced by the re-assuring messages which emanate from the DHBs and the new provider, because they do not tally with the messages we are hearing from doctors and their patients."

The association is calling on the Minister of Health to urgently put in place an independent review process to monitor the situation.