Mater Health will outsource its in-house pathology services over the next 12-18 months for their Brisbane and Springfield hospitals in Queensland, approximately 430 positions across full-time, part-time and casual employment.
The transition will occur over time with pathology services going to Sullivan Nicolaides Pathology and Pathology Queensland. Over 100 staff are expected to be affected in the first stage and the majority of changes to the workforce will occur in 2027.
Mater announced that more than 100 positions are expected to be lost within the next two months, with more than 400 positions affected by the end of 2027.
This announcement comes after concerns arose regarding a formaldehyde exposure incident at Mater Brisbane’s anatomical pathology lab in September 2026. This decision, however, comes due to financial issues with rising costs of running the services and Medicare funding not keeping pace with the rising costs of delivering pathology services.
There are concerns amongst staff and unions regarding job security. On November 4, 2026, the Together Queensland union urged Queensland Health Minister Tim Nicholls to intervene and halt the first-phase job terminations until consultation and redeployment processes are completed.
In September 2026, Mater Brisbane had to temporarily close their anatomical pathology lab due to concerns of possible formaldehyde exposure.
Formaldehyde is a common substance found in pathology labs in the form of a solution called formalin. This is used to preserve tissue samples. However, there are risks associated with formaldehyde exposure. Vapor inhalation or direct contact can cause issues.
Throughout the investigation, 17 personal samples were taken. One sample was found to exceed the relevant exposure standards for the workplace. Precautions have been put in place, including PPE and monitoring, whilst the investigation continues.
According to The Guardian's November 3 report, the 17 personal exposure-monitoring samples were collected on September 21, and the laboratory was suspended on September 24 after one employee's result exceeded the workplace exposure standard. Mater said an investigation into the abnormal result was ongoing.
It has been reported that the lab would need major changes to open again. Whilst this is a major concern regarding lab safety, Mater has decided to outsource its pathology services due to financial issues.
Mater stated that reopening the anatomical pathology laboratory would require significant long-term infrastructure changes and investment. However, the organization clarified that the permanent closure and outsourcing decision followed an overall review of the financial and operational sustainability of its pathology business. The formaldehyde incident should therefore not be considered the sole reason for the outsourcing decision.
The anatomical pathology laboratory also handles tissue and cell testing involving fetuses and newborns in cases of unexpected deaths. This makes the transition relevant to maternal and neonatal healthcare, in addition to routine diagnostic services.
Pathology services at Mater’s South Brisbane and Springfield sites will be transitioned over time to external pathology services, Sullivan Nicolaides Pathology and Pathology Queensland.
The changes are specific to Mater's Brisbane and Springfield hospitals. Its hospitals in Townsville, Mackay, Rockhampton, Bundaberg and the Gold Coast already use external pathology providers and are not affected by this particular transition.
The transition will occur by December 2027. Mater has confirmed they will continue to provide pathology services. Patients will still have their tests carried out.
This news has raised concerns amongst unions regarding job losses, job transfers, and pay and conditions.
Continuity of services will be a concern for patients. Pathology testing is an integral part of diagnosis. Mater has stated that patients do not need to take any immediate action and that doctors will continue to have access to pathology results throughout the transition. Existing Mater Pathology collection centers will remain open for the time being, although changes to the collection center network are expected at a later stage. Patients directly affected by changes will be contacted by their healthcare teams.
One specific service affected by the broader transition is Mater's Warfarin care program. Mater has confirmed that the program will eventually close, although it will continue operating for the time being. The organization is still working through future arrangements and will directly contact affected patients before any changes take place.
Formaldehyde is a colorless chemical with a strong odor. It is used in various industries, including healthcare, manufacturing, and laboratory environments. Formalin is a common substance used in pathology to preserve tissue samples.
Depending on how concentrated the formaldehyde is, how long someone has been exposed to it, and the type of exposure, different effects can occur. These include inhalation, skin contact and accidental ingestion.
Respiratory Issues: Inhaling formaldehyde vapor can cause irritation to the nose, throat and respiratory tract. Those exposed may cough, have headaches, irritated noses and feel uncomfortable when breathing. Those with higher levels of exposure may suffer from more serious conditions such as bronchitis and pulmonary oedema – increased fluid in the lungs. Those who have reacted to formaldehyde may develop asthma-like symptoms with less exposure.
Eye and Skin Irritation: Contact with formaldehyde vapor can cause eye irritation, redness and watering. Contact with liquid formalin can cause more damage. This can cause damage to the cornea. Formaldehyde can cause skin irritation, allergic contact dermatitis and chemical burns.
Organ Damage: Those with high levels of exposure can suffer from organ damage. Formaldehyde is broken down to Formate in the body. This can cause metabolic acidosis. This occurs when the levels of acid in the body gets out of balance, this can be life threatening. Those with serious poisoning can also suffer from respiratory complications, circulatory shock and kidney failure. Neurological symptoms have been reported such as headaches, irritability, sleep issues and memory and coordination problems.
Accidental Ingestion: Accidentally ingesting formalin can cause serious damage to the gastrointestinal tract. As little as 30mL of a 37% formaldehyde solution has been reported to cause fatal poisoning in an adult (Agency for Toxic Substances and Disease Registry).
This incident shows the importance of ensuring safe working conditions in pathology labs. Staff who regularly deal with formalin and other chemicals need to have the correct PPE, good ventilation and protocols in place to protect them.
Engineering controls can help reduce exposure. These could include properly maintained fume extraction. Monitoring and training in the workplace is important to identify any potential hazards.
While Mater makes this change to their pathology services, they need to ensure their diagnostic services are not impacted.
The transition raises questions about the future of pathology workers, the continuity of specialist diagnostic services and the arrangements for patients who rely on Mater's pathology programs. The impact will become clearer as the transition progresses towards its expected completion in December 2027.
References:
Agency for Toxic Substances and Disease Registry. “Formaldehyde: Medical Management Guidelines.” Centers for Disease Control and Prevention. Accessed November 4, 2026. https://wwwn.cdc.gov/TSP/MMG/MMGDetails.aspx?mmgid=216&toxid=39
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