The ageing pneumatic tube system, which transports small items around the hospital, including laboratory samples, has been malfunctioning.
In his September report, Southern District Health Board facilities and site development manager Warren Taylor said the faults had resulted in the backup and delay of many lab samples.
The tube had to be cut in several places for samples to be recovered, he said.
The maintenance, required during the month, had resulted in long periods of unplanned overtime as staff dealt with a variety of faults.
Mr Taylor said the system was highlighted in previous capital plans for upgrading, but had never had the required priority.
He had received advice that the infrastructure was failing and might not be able to be repaired because of its age.
Replacement would be included in the next capital plan, with a higher priority.
In his report, to be considered by the hospital's advisory committee today, Mr Taylor said staying within budget, particularly in Southland, was becoming increasingly difficult.
In several areas, large repairs that could not be deferred had to be undertaken.
Some longstanding maintenance items had also been completed.
While that was excellent, it "only compounds the budget issues".
Most of the items he referred to had to be completed because they related to compliance with the building code, he said.
Concerns about the potential risk posed by many of Dunedin Hospital's outmoded facilities and some of its equipment have been raised regularly by management and board members in recent years.