Last April, the state government gave SA Pathology one year to demonstrate it could provide high-quality services at a cost consistent with the of the rest of the nation.

An independent inquiry into the service's operation was released, which also recommended closing a number of outlets across the state.

In the past 12 months, SA Pathology's cost reduction target of $7.3 million was achieved and service levels, such as on-time delivery for time-critical diagnostics, have also been either maintained or improved.

Premier Steven Marshall said the operation became an organisation of international standing and thanked all staff for their approach to the improvement.

Health Minister Stephen Wade said the significant improvements delivered and quality of the team were highlighted in their responce to the coronavirus pandemic.

"Even before the World Health Organisation urged countries to test for COVID-19, SA Pathology was delivering a program that was as good, if not better, than any organisation in the world," Mr Wade said.

"SA Pathology has met each of the markers put in place by the state government and is now delivering exceptional value for money to taxpayers."

Australian Associated Press