A board commissioners meeting yesterday considered a report which detailed that Wakari was no longer fit for purpose.
Commissioners were told facilities were out of date now, but with the major project to rebuild the main Dunedin Hospital under way it was likely it would be years before necessary improvements could be funded.
The report said work was still being done on a briefing for commissioners and the mental health leadership group, but it was likely staff would propose a business case be taken to Government to fund either an upgrade of existing facilities or a new build.
Mr Fleming said the board needed to ensure it could provide mental health services.
''We clearly cannot sit back and not do anything.''
Specialist services director Patrick Ng said the updated report on Wakari would be presented to the next commissioners meeting in July.
Meanwhile, audit agency IANZ was in Dunedin meeting the board as part of the process for Dunedin Hospital's radiology service to regain accreditation.
Fourteen months ago IANZ declined to accredit the service due to a range of issues, which included issues with asbestos and leaks, outdated information systems and the long waiting lists for scans, particularly MRIs.
The board has previously said the loss of accreditation meant it could not claim revenue for ACC work, but the meeting was told ACC had in fact continued to pay for scans.
Mr Ng said out a wide range of corrective actions the board had undertaken, and said he hoped IANZ would review the reaccreditation application favourably.
